Adjudication is a statutory and relatively quick dispute resolution process that allows parties to promptly resolve issues related to payments and other disputes during the course of a construction project. Adjudication is mandated in Section 108 of the Housing Grants, Construction and Regeneration Act 1996.

Here are key features of adjudication in construction contracts:

1. Statutory Framework:
   Adjudication is a legal process mandated by the Construction Act. The Act provides a framework for the adjudication process and sets out specific requirements and timelines.
2. Interim Resolution:
   Adjudication is designed to provide an interim resolution to disputes. It allows parties to quickly address issues that may be hindering progress on a construction project or causing disagreements.
3. Appointment of Adjudicator:
   The process involves the appointment of an adjudicator, who is typically a construction industry professional with expertise in the relevant field. The parties may agree on the adjudicator, or if they cannot agree, a nominating body may appoint one.
4. Strict Timelines:
   Adjudication operates under strict timelines. The process is meant to be swift, and the Construction Act stipulates that an adjudicator must reach a decision within 28 days of the referral of the dispute (though this period can be extended by the referring party).
5. Binding Decision:
   The decision of the adjudicator is binding on a temporary basis. This means that the parties must comply with the adjudicator's decision, and the decision is enforceable until the dispute is finally resolved through other means, such as arbitration or litigation.
6. Enforcement:
   If a party fails to comply with the adjudicator's decision, the other party can seek enforcement through the courts. In practice, most decisions are accepted. Adjudication decisions are usually enforced except in rare and limited circumstances.
7. Payment Disputes:
   Adjudication is commonly used to resolve payment disputes. If one party believes they are entitled to a payment, they can refer the matter to adjudication to obtain a quick decision on the matter.

While adjudication is a powerful and efficient tool for resolving disputes in construction contracts, it is important to note that it provides only an interim solution. Parties may still pursue further dispute resolution processes, such as arbitration or litigation, for a final determination of the dispute. Many construction contracts include provisions for adjudication as a mandatory step before other forms of dispute resolution can be pursued. Adjudication is now commonly used in other jurisdictions such as Ireland and Canada.