How Construction Adjudication Works – A Practical Guide

What Is Construction Adjudication?

Construction adjudication is a fast-track dispute resolution process that gives any party to a construction contract the right to have a dispute decided by an independent adjudicator within 28 days. It was introduced by the Housing Grants, Construction and Regeneration Act 1996 (the Construction Act) and has become the most widely used method of resolving construction disputes in the UK.

The key features of adjudication are speed (a binding decision within 28 days), relatively low cost compared to litigation or arbitration, and temporary binding effect (the decision must be complied with immediately, but can be revisited in later proceedings). In practice, the vast majority of adjudication decisions are never challenged – they become the final resolution of the dispute.

When Should You Use Adjudication?

Adjudication is most commonly used by subcontractors to recover unpaid payment applications from main contractors, but it can be used for virtually any construction dispute. Common uses include payment disputes (including smash and grab adjudication where no valid pay less notice was issued), disputed NEC compensation event assessments, final account disagreements, variation valuation disputes, extension of time disputes, and defects liability disputes.

Adjudication is particularly effective when you have a strong case on the merits or on procedural grounds, when the sums involved justify the cost of the process, and when the other party is unlikely to engage constructively in negotiation.

The Adjudication Process Step by Step

Step 1 – Notice of Adjudication: The referring party serves a Notice of Adjudication on the other party, identifying the dispute and the relief sought. This starts the formal process.

Step 2 – Adjudicator appointment: An adjudicator is appointed, usually by an Adjudicator Nominating Body (ANB) such as the RICS, RIBA, or TeCSA. The adjudicator must be appointed within 7 days of the Notice.

Step 3 – Referral: The referring party submits a detailed referral notice to the adjudicator within 7 days of the appointment, setting out the case with supporting evidence.

Step 4 – Response: The responding party typically has 7-14 days to submit their response.

Step 5 – Decision: The adjudicator reaches a decision within 28 days of the referral (extendable to 42 days by agreement). The decision is temporarily binding and must be complied with immediately.

What Is Smash and Grab Adjudication?

Smash and grab adjudication is a specific type of adjudication where a subcontractor or contractor claims the full value of a payment application on the basis that the paying party failed to issue a valid pay less notice by the required deadline. Under the Construction Act, if no valid pay less notice is served, the notified sum (the amount in the payment application) becomes due in full, regardless of what the work is actually worth.

This principle was firmly established in the case of ISG Construction Ltd v Seevic College (2014) and has since been widely applied. Smash and grab adjudication is one of the most effective tools available to subcontractors for recovering unpaid applications and is commonly used across the UK construction industry.

How Much Does Adjudication Cost?

The cost of adjudication varies depending on the complexity of the dispute. The adjudicator's fees typically range from £5,000 to £20,000 for a straightforward dispute, plus the cost of preparing the referral or response. A specialist construction claims consultant like RKA Associates typically charges on a fixed-fee basis for adjudication work, so you know the cost before you commit. For many subcontractor payment disputes, the total cost of the process is a small fraction of the sum recovered.

How RKA Associates Can Help

RKA Associates provide adjudication support for subcontractors and contractors across the UK. We prepare referrals, draft responses, manage the adjudication process and advise on enforcement. We can mobilise within 24 hours from our Birmingham office. Call +44 333 577 0303 for an immediate assessment.