Disputes are common in the construction industry, given that there are so many moving parts and interested parties. There is much that can go wrong; from payment issues to quality of work, there’s no shortage of potential problems. Luckily, several dispute resolution options are available to affected parties.

One of the most common and powerful dispute methods is adjudication, which those in a construction contract have a legal right to use under the Housing Grants, Construction and Regeneration Act 1996, also known as the Construction Act, and amended by the Local Democracy, Economic Development and Construction Act 2009.

Adjudication is designed to be fast and temporarily binding; it often delivers a decision within 28 days of the Referral Notice, which makes it a highly effective tool for keeping projects moving and cash flowing.

Preparation is crucial. A well-prepared case significantly increases your chances of success and minimises disruption to your project.

In this blog, we’ll explore what adjudication involves and how to prepare effectively, with a step-by-step guide so you can strengthen your position and ensure a successful outcome.

Adjudication is a short, temporary, binding dispute-resolution process that aims to keep construction projects moving and cash flowing. Parties in a dispute can engage with an independent and impartial adjudicator, who must issue a decision within 28 days of the referral notice, unless an extension is agreed.

The adjudicator’s decision is binding and must be complied with; however, it can be later challenged in arbitration or litigation.

The main reason for its popularity as a dispute resolution option is that it is relatively quick and cost-effective, especially compared to court proceedings or arbitration. In the UK, you can refer any construction related dispute to adjudication, meaning that the process can cover a broad range of disputes, including:

• Non-payment or payment issues.
• Extension of time and delay claims.
• Defects and workmanship issues.
• Contract interpretation disputes.

So, why do you need adjudication? Construction projects can quickly stall if disputes drag on, but adjudication can help by addressing issues quickly.

Whether it’s payment issues that are disrupting cashflow, delay claims creating tension between parties or unresolved disagreements that escalate into larger commercial conflicts, adjudication can help to address and rectify all these common construction disputes.

Even if a party disagrees with the outcome, the decision is generally enforceable, which allows work and payments to continue while longer-term remedies are pursued.

Basically, adjudication provides speed, enforceability and commercial certainty following a decision, which can prevent costly delays.

Because adjudication moves so quickly, you need to prepare for it. Once the adjudication process starts, the deadlines are tight, and extensions are limited, so the more you plan ahead and prepare, the better and more successful you will be.

To ensure you approach adjudication methodically and confidently, we’ve created a practical and structured beginner’s step-by-step guide:

Step one: Confirm a right to refer

Before starting the adjudication process, you need to confirm that you have a valid right to refer the dispute.

To do this, you must check whether your contract falls within the scope of the Construction Act. Most construction contracts do; however, there are specific exclusions (Section 106/105 of the Act), such as residential occupiers or supply-only contracts.

You also need to ensure the dispute has crystallised, i.e. ensure that a difference between the parties has in fact arisen.

Common construction disputes referred to adjudication include non-payment or underpayment, extension-of-time disagreements, disputes over variations and contract interpretation issues.

Other jurisdictions, like Ireland, restrict adjudication to payment disputes only, meaning points of law or contractual interpretation cannot be referred, e.g., obtaining a decision on a liability point, such as a disputed extension of time entitlement or termination, before pursuing a costly damages claim as a risk mitigation strategy is not possible.

Ensuring the dispute has in fact crystallised is a vital step because it ensures your adjudicator’s decision is valid and reduces the risk of jurisdictional challenges or procedural objections later.

Step two: Serve a notice of adjudication

The next step is to serve the notice of adjudication, which formally starts the process. This notice must include the parties involved, the nature and scope of the dispute and the redress or remedy sought.

Failure to clearly state these three things can lead to delays in adjudication or undermine the whole process; that’s why it is essential to follow the contractual notice requirements.

Once the notice of adjudication is served, the statutory timeline begins, so you need to ensure preparation is already underway.

Step three: Appoint an adjudicator

Then an adjudicator needs to be appointed. If the two parties cannot reach an agreement on who to appoint, an application can be made to an Adjudicator Nominating Body (ANB) such as the Royal Institution of Chartered Surveyors or UK Adjudicators. The ANB is usually stated in the contract, although this is not always the case.

You can ask the ANB to select an adjudicator with appropriate industry experience. This can help ensure that the dispute is determined by someone who understands the technical and commercial context.

What's more, appointing an adjudicator with the right expertise for your dispute can make a significant difference in how complex evidence and contractual provisions are interpreted. A discrete point of law might suit a lawyer better, whereas a valuation dispute might be better suited to a quantity surveyor, for example.

Step four: Compile and submit the referral notice

After the notice of adjudication is issued and typically after the adjudicator is appointed, you must compile and submit your referral notice within seven days of the notice of adjudication. This forms the core document of the adjudication as it outlines your case in full, including:

• A clear background to the dispute.
• Relevant contractual provisions/law.
• A concise statement of facts.
• Application of the contract and law to the facts.
• The relief sought.
• Supporting documentation, including potentially factual and expert evidence.

It must be served within seven days of the notice of adjudication and sets out your arguments in full.

When compiling your referral notice, ensure absolute clarity. We recommend you use structured headings and cross-reference documents. It is best to avoid incorporating unnecessary or irrelevant information and stay on point.

A well-organised referral notice makes it significantly easier for the adjudicator to understand your position and assess your evidence within the tight timeframe.

Step five: Gather essential documentation and evidence

Gathering essential documentation and evidence is vital to ensure a successful adjudication.

Here’s the type of documentation and evidence you need to consider providing:

• The construction contract.
• Variations and payment schedules.
• Correspondence and contemporaneous records (emails, meeting minutes).
• Programmes.
• Site diaries and certificates.
• Financial records.

You might also want to consider including any necessary technical reports or expert evidence, as these might strengthen your position.

Step six: Respond to the respondent’s submissions

Once your referral notice is submitted, the responding party will issue their response. This is basically the responding party's defence to your (the referring party's) claim.

At this stage, you may need to address points raised, rebut arguments and provide clarifications for any misunderstandings; all of which aid the adjudicator in developing a clear understanding of the dispute from both parties’ side.

Due to the tight deadlines associated with adjudication, timing is critical. The timetable is usually at the discretion of the adjudicator and is typically set after service of the Referral Notice, although sometimes the contract might include an adjudication timetable.

Convention usually means that you will be afforded an opportunity to reply to the responding party’s response. When doing so, a clear and focused reply can significantly strengthen your overall case. Whilst at the adjudicator’s discretion, five to seven days is a common period for service of the reply to the response.

Step seven: Respond to the adjudicator’s questions or clarifications

Adjudicators often request additional information or clarification during the process, so it’s vital to respond clearly, comprehensively and on time.

These requests provide an opportunity to reinforce your case and address any uncertainties the adjudicator may have. Timely and thorough responses can help to ensure a well-informed and balanced decision.

Step eight: Review, implement and comply with the decision

The final stage of adjudication is the adjudicator’s decision, which is binding and enforceable barring certain very limited circumstances.

If the losing party fails to comply, enforcement can typically be sought through the Technology and Construction Court (TCC), a specialist division of the High Court that upholds adjudicators’ decisions in the majority of cases. As a matter of policy, the courts will always seek to enforce an adjudicator’s decision, even if it is wrong – so long as the adjudicator has answered the right question, the decision will be enforced. However, this can lead to ‘rough justice’ outcomes.

Just because the decision is enforceable, it doesn’t mean it is the final decision. Although both parties need to comply with it immediately, you may still pursue arbitration or litigation for a final determination.

The purpose of adjudication is to resolve disputes quickly and allow the project to progress and continue.

Once the referral notice has been issued, an adjudicator has a limited time to make a decision. This means the whole process is very quick, leaving little time to gather evidence, refine arguments or correct procedural mistakes, hence why preparation is key.

By following a structured, step-by-step approach, like the one we’ve detailed above, where you provide clear documentation, robust evidence and careful drafting, you position yourself for success.

At Novus Resolve, we help clients prepare for adjudication, resolve disputes efficiently and maintain project momentum. Whether you are considering adjudication or responding to one, expert support can make the difference between uncertainty and clarity.

Preparing for adjudication requires careful planning, meticulous organisation and technical understanding, which is why many people prefer to seek advice or assistance during the process.

Professional guidance reduces risk, strengthens clarity and improves the likelihood of a successful outcome.

At Novus Resolve, we support clients during adjudication by providing expert reports for this process. Our Director, Neil Forte, is also a highly experienced and skilled adjudicator who is available for direct adjudicator appointments.

Our experience in commercial management, dispute avoidance, and expert witness services enables us to deliver clear, structured and persuasive reports. Whether you’re considering adjudication for a delay dispute or are in the process of gathering evidence for a final account dispute, we can help.

Contact our team today if you are facing a construction dispute and want to prepare properly for adjudication.