Adjudication in context — overviewDefining adjudication

Adjudication is a fast mechanism for settling disputes under construction contracts on a provisional interim basis. Adjudication provides for a tight timetable and requires the impartiality of an adjudicator. There is a right to refer a dispute at 'any time'.

Adjudications can be provided for in the parties contract, if the contractual provisions are in compliance with the Housing Grants, Construction and Regeneration Act 1996. If not, the Scheme for Construction Contracts (England and Wales) Regulations 1998 apply. Adhoc adjudications may also arise.

Differences between adjudication and other forms of dispute resolution

There are a number of differences between adjudication and other forms of dispute resolution such as ADR and arbitration, for example:

• privacy/confidentiality

• procedure

• fees

• costs

• powers of the presiding adjudicator, judge, arbitrator, mediator or expert

• enforcement of award/judgment/decision/determination

The Local Democracy, Economic Development and Construction Act

The Local Democracy, Economic Development and Construction Act (the LDEDC Act) will amend aspects of the Housing Grants, Construction and Regeneration Act 1996 (HGCRA 1996). The LDEDC Act has yet to come into force (it received Royal assent on 12 November 2009); it will not be retrospective. It changes a number of provisions currently in force under the HGCRA 1996 for example:

• adjudications will no longer be limited to written contracts

• it stipulates when parties can agree who bears the cost of the adjudication