What is Construction Adjudication?

Construction adjudication is a faster and less formal dispute resolution than resorting to court proceedings. The speed of adjudication permits construction work to resume and helps cash flow. However, the adjudication process has become more complex, with parties sometimes required to serve detailed submissions, expert reports, and witness statements.

A party to a construction contract can exercise their statutory or contractual right to direct a dispute to an adjudicator. They can do it by issuing a notice of adjudication, also known as a notice of intention to refer a conflict to an adjudicator. If the contract does not provide for adjudication, then statutory adjudication does not apply. Once an adjudicator is selected, the referring party serves a referral notice on the other party.

The adjudicator’s conclusion is binding until the conflict is finally determined by litigation or arbitration. Then, the responding parties must pay or act upon it before contesting it.

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