The Adjudication Process in Commercial Construction Contracts

October 31, 2025

In the fast-paced world of commercial construction, disputes are almost unavoidable — whether over payments, delays, variations, or defects. To prevent these disagreements from escalating into costly and time-consuming litigation, the Housing Grants, Construction and Regeneration Act 1996 (the “Construction Act”) grants parties a statutory right to adjudication — a swift and effective dispute resolution process tailored to the construction industry.

Often described as a “pay now, argue later” mechanism, adjudication allows one party to refer a dispute to an independent adjudicator, who must reach a decision within 28 days (subject to any extension). The decision is binding and enforceable unless later overturned by arbitration or litigation, helping maintain vital cash flow across projects.


The process begins with a Notice of Adjudication, followed by the appointment of an adjudicator and submission of a Referral Notice setting out the case in full. The responding party then provides its Response, and further submissions or meetings may follow at the adjudicator’s direction. Ultimately, a decision is issued — usually within four weeks — offering a decisive outcome without prolonged proceedings.


For construction businesses, adjudication serves as an essential safeguard. It provides a quick, accessible route to secure payment, resolve disputes over delay or defective work, and uphold project momentum. Even where contracts are silent, the right to adjudicate remains, backed by robust enforcement through the Technology and Construction Court (TCC), which routinely supports the process via summary judgment applications.


In short, adjudication keeps projects on track, protects working capital, and allows parties to move forward with confidence — making it a cornerstone of modern construction law.


For expert advice on adjudication or construction-related disputes, please contact Claire.Iacovou@kingsley-wood.com or Graham.Cashin@kingsley-wood.com

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