Construction Adjudication in the United Kingdom: Past, Present, and Future

Adjudication was enacted in the Housing Grants, Construction and Regeneration Act (1996) as a means of improving payment practices in the U.K. construction industry. It is a statutory right that can be invoked unilaterally at any time on a construction contract that is in writing and is a quick (28days) and usually inexpensive alternative to arbitration or litigation covering all manner of disputes. Construction adjudication has developed from zero in 1998 to 2,000 cases in the year 2002 reducing to about 1,500 cases per annum currently. Construction adjudication produces a decision that is “temporarily binding” and will be enforced by the courts until the substantive issues in dispute are resolved by litigation, arbitration, or agreement. The principles of natural justice apply but the courts apply them pragmatically because of the statutory time scales. The adjudicator may get the decision wrong. The courts will still enforce the Decision. A dispute must exist for adjudication to be invoked. A governmental review of the Act has resulted in recommendations including extending adjudication to oral contracts.