FAQs

Adjudication is a dispute resolution process. Around the world adjudication is increasingly used as an alternative to potentially costly and time consuming litigation. Since the late 1990s in England and Wales a statutory right has existed for parties to qualifying construction contracts to refer a dispute arising under their contract to adjudication.

Statutory adjudication is relatively quick, starting with a 28 day decision timeline – though this may be extended with party consent. The parties make various documentary submissions to the Adjudicator, including the opportunity to respond to the other party’s submissions. The underlying purpose of statutory adjudication is to provide swift resolution to disputes and to keep the money flowing between the parties.

Any dispute arising under a qualifying construction contract may usually be referred to adjudication. The decision of the Adjudicator is typically binding on the parties until the works are complete, thereafter a party may seek to re-open the dispute in litigation if they are of the opinion that the Adjudicator has made a sufficiently grievous error to warrant the risk and expense of litigation.

The party referring a dispute to adjudication typically has the luxury of time to prepare their submissions, not so for the responding party who will be subject to a relatively short period of time to prepare their response.

We can help you at every step of the adjudication process, from strategy to drafting to representation.

Mediation has a lot to offer parties in dispute.

• Unlike adjudication, arbitration or litigation, in mediation the parties remain in control rather than handing control of the dispute to a third party.
• Mediation is private. 
• It’s quick – often lasting only a single day, plus preparation time.  
• Mediation can take place either on-line or in-person.
• It’s relatively cheap compared to adjudication, arbitration or litigation.  
• Rates vary according to each Mediator, but a rate in the range of £500 to £1000 per party per day ex VAT plus expenses would be typical.
• Each party would typically bear its own costs incurred for experts, representatives or solicitors.
• Any agreement reached by the parties is reduced to writing, with actions and due dates to allow it to be effectively managed. 
• Mediation helps to preserve commercial relationships which can often be harmed by the more adversarial alternatives.

We can help you at every step of the mediation process, from understanding the procedure to negotiation planning to role play simulations to representation.

Yes, we can help you with negotiation.  We can give you a 'fresh eyes' perspective on the items to be negotiated and help you to recognise any unrecognised value that could be incorporated into a solution.

We can also assist by playing 'devil's advocate' to help you develop compelling responses.  Alongside which we can help you to develop a negiotation plan.

Negotiation is typically the starting point, with senior representatives meeting to determine if there is sufficient common ground to reach a settlement.  

Mediation adds a third party, the Mediator, into the room who will lead the mediation process.  The Mediator won't take sides, but will meet with the parties to discuss the issues and potential solutions.  Mediation typically lasts a day, if agreement is reached it will be reduced to writing by the solicitors accompanying each party so that each party is clear about what has to be done, by when and by whom.  Mediators will typically be either solicitors, engineers or surveyors.

In adjudication the parties hand over their dispute to a third party, the Adjudicator, to determine.  Each party will make documentary submissions, occasionally the adjudicator may request an in-person hearing, but more typically the process will be documents-only.  Statutory adjudication has a baseline timeframe of 28 days, that can typically be extended if required to the degree permitted by the adjudication rules being used.  Once the Adjudicator has published their decision, it is temporarily binding on the parties to implement it save for occassional circumstances that may be appealled in court.  Once the works are complete, either party may refer the adjudicated dispute to a court for a final decision.  Similar to the Mediator, an Adjudicator will typically come from a legal, engineering or surveying background.

Compared to negotiation or mediation, adjudication can take a heavy toll on business relationships and is typically the more expensive option, though still less costly than litigation which can get very expensive very quickly if the value of the dispute exceeds £25,000.   That said, adjudication remains the more expedient approach for dealing with payment disputes in which the paying party has failed to adhere to the contractual payment mechanism or has failed to correctly value the work.

In principle yes, but in reality it depends.  For example, the contract may contain an express notification period for referring matters to adjudication after a dispute has crystalised, if the contract is for works outside of the scope of statutory adjudication, then failure to submit timely notification may be fatal to launching an adjudication.  Alternatively, a contract may contain a clause that has the effect of making the final certificate binding if not appealed within a specific time period. Otherwise, yes it may be possible to refer a dispute to adjudication, subject to normal rules of limitation, at any time irrespective of termination, repudiation or completion of the contract under which the dispute arose.