The right to refer a case to adjudication exists at any time. The Housing Grants, Construction and Regeneration Act 1996 states that this right cannot be refused without a fair reason, even if the contract does not explicitly state adjudication as dispute resolution. However, this does not mean that all cases are suitable for the adjudication process.
When is adjudication suitable?
Adjudication is used for dispute resolution predominantly in the construction industry because it is a quick and efficient process. It can help prevent further delays and is more cost effective than traditional court proceedings. Two benefits that are appealing to those working on time and money sensitive projects.
Therefore the most suitable disputes for adjudication fall within these realms:
Payment issues
Additional or extra works
Delays
Defective works
Breach of contract
Professional negligence
When is adjudication not suitable?
Technically, there are very little construction disputes where adjudication will not be a suitable course for resolution. However, the nature of the dispute can impact the process. For example, adjudication typically takes 28 days from notices being served to the adjudicator’s decision.
Certain factors can make processes other than adjudication more suitable, such as:
- Complex disputes
- Disputes that have not crystallised
- Multiple (unrelated) disputes
- Disputes seeking resolutions other than money or time
- If parties have been unable to agree on a timeline for the process
How do you know if a dispute is suitable for adjudication?
As I have already covered, it is not so much that there are specific disputes that are not suitable for adjudication. It is more about the individual factors which will be unknown until the dispute has arisen. Therefore it is vital that any dispute is fully reviewed before it enters the adjudication process.
If you are unable to determine yourself if a dispute is suitable for adjudication, it is always best to seek expert advice. At Mercantile Barristers, we will not only inform you if your case is suitable for adjudication but help guide you through the process.
In addition you can learn more about the process from my recent webinar covering the adjudication process and how it can be used to even avoid disputes. View it here.
