Why Adjudication Clauses Are Crucial in Domestic Construction Contracts
Understanding how a well-drafted adjudication clause can protect both homeowners and contractors from costly and time-consuming disputes.
Why Adjudication Clauses Matter in Domestic Construction Contracts
When homeowners embark on building projects — whether an extension, renovation, or a new build — attention usually centres on budgets, design, and timelines. Yet one of the most critical aspects of any project often receives the least focus: the construction contract itself.
A common oversight in domestic building agreements is the absence of a properly drafted adjudication clause or reliance on informal agreements that offer no clear dispute resolution route. This omission can have serious implications when disagreements arise.
What Is Adjudication?
Adjudication is a statutory process under the Housing Grants, Construction and Regeneration Act 1996, allowing parties to a qualifying construction contract to refer disputes to an independent adjudicator.
The process is intentionally swift — typically concluded within 28 days — and the adjudicator’s decision is binding and enforceable unless and until it is overturned by litigation or arbitration (which rarely happens).
In Macob Civil Engineering Ltd v Morrison Construction Ltd [1999], the Technology and Construction Court confirmed that adjudicator decisions must be complied with, even if challenged later — reinforcing adjudication’s role as a robust and efficient dispute-resolution tool.
Why It Matters in Domestic Contracts
Unlike commercial construction contracts, domestic building agreements often exclude adjudication or are drafted informally, leaving adjudication rights uncertain.
Importantly, there is no implied right to adjudicate in domestic construction contracts — both parties must explicitly agree to it. Without this clause:
- Homeowners may have no efficient mechanism to resolve disputes over payment or workmanship.
- Contractors risk serious cash-flow issues if payments are withheld without a clear adjudication route.
- Disputes can escalate into prolonged and expensive litigation, damaging relationships and delaying project completion.
How Kingsley Wood Helps
At Kingsley Wood, we ensure that contracts for both homeowners and contractors are clear, compliant, and protective of all parties involved. Our legal team drafts agreements that:
- Comply with JCT frameworks and Consumer Regulations.
- Contain transparent provisions for payment, quality control, and dispute resolution.
- Include an express right to adjudicate, enabling quick and enforceable decisions when disputes arise.
By incorporating an adjudication clause from the outset, you safeguard your project against avoidable risk, uncertainty, and unnecessary expense.
New Paragraph
Learn How Kingsley Wood Can Help You
Whether you’re planning a home renovation or managing a large-scale construction project, our team of experienced lawyers can provide the guidance and expertise you need to ensure your contracts protect your interests from start to finish.
Explore our Construction Law experts HERE.
