Adjudication decisions — OverviewEffect of the decision

An adjudicator's decision is binding unless and until determined by litigation, arbitration or party agreement. However, in a contractual adjudication, parties may include a provision for the adjudicator's decision to be final and binding, unless certain steps are taken within a specific time frame. If a party challenges a decision simply to delay payment of the awarded sum, that party could be liable to pay indemnity costs for the enforcement proceedings.

Time limits for making the decision

An decision made out of time is a nullity. The courts are strict in applying the time limits. Generally, a decision must be made within 28 days of the date of the Referral Notice. Whether the 28 days is calculated from the date on the Referral Notice or the date it is received by the adjudicator is unclear as the courts have so far been inconsistent in their approach. Further, a distinction has been drawn between the date the decision is 'reached' and the date of 'delivery' to the parties. If not on the same day then the delivery must be as soon as reasonably practicable after the decision has been reached. Liens are inconsistent with an adjudicator's obligation to deliver the decision to the parties as soon as reasonably practicable.

An adjudicator may seek an extension of time for the making of the decision; parties are not obligated to grant such a request. An initial extension from 28 days to 42 days can only be granted by the Referring Party whilst any further extension requires the consent of both parties. Time limits are calculated in whole days and not business days.

Form and nature of the decision

An adjudicator need only give reasons for his decision if requested to do so. If not so requested, a failure is not a breach of natural justice.

Where the parties have provided jurisdiction to do so, a decision should deal with the adjudicator's costs and party/party costs, There is no free standing power to award interest. If the adjudication is under procedural rules, other than the Scheme, the contract or rules may expressly require reasons, party/party costs etc. to be addressed in the decision.

An adjudicator can correct errors in his decision under the 'slip rule'.