Adjudication is a compulsory dispute resolution method that applies to construction contracts. When forming an agreement, parties cannot contract out of the right to adjudication provisions in the Housing Grants, Construction and Regeneration Act 1996 (Construction Act 1996). If a construction contract does not refer to the adjudication provisions contained in the Construction Act 1996, the Scheme for Construction Contracts (England and Wales) Regulations 1998 provisions take effect as implied terms to the right to adjudication.

In cases of construction contract disputes, it is not uncommon for payment, delay and disruption, and remedying defects claims to arise. Prevention is always preferable to the cure, which is why it is imperative to ensure your construction contracts are drafted/checked by an experienced Solicitor.

The process is designed to be quick and cost-effective in order to minimise delays and keep cash flowing. The Adjudicator’s decision is binding until it is ultimately determined by agreement, arbitration, or the Court. It is rare for a losing party to successfully challenge an adjudicator’s ruling.

Where construction and engineering disputes arise and the contracting parties are unable to resolve the matter between themselves, due regard must be given to the “Pre-action Protocol for Construction and Engineering Disputes” (the “Protocol”) before court proceedings are commenced. The Protocol encourages parties to exchange information about a potential claim earlier on in a dispute so that a settlement can be reached. In cases where there is no alternative but to litigate, the protocol must still be adhered to as this is considered to aid efficient management of proceedings. To satisfy the Protocol, the following steps must be pursued:

1. The Claimant serves a letter of claim on the Defendant.
2. The Defendant acknowledges receipt of the letter of claim within 14 days of service.
3. The Defendant serves a letter of response and in some circumstances, details of any counterclaim on the claimant.
4. If no response or acknowledgement is received from the Defendant, then the Claimant may issue proceedings.
5. If a counterclaim is included in the Defendant’s letter of response, then the Claimant will have 21 days within which to serve a counterclaim.
6. Within 21 days of the counterclaim being served on the Defendant, a without prejudice meeting of the parties will be convened or in the alternative, the parties must pursue an Alternative Dispute Resolution method.
7. If a settlement is reached through the without prejudice meeting or Alternative Dispute Resolution method then the dispute ends. If no settlement is reached, the claimant may issue proceedings.
8. If there is no counterclaim included in the letter of response then a without prejudice meeting of the parties will be convened within 21 days of the counterclaim or in the alternative, the parties must pursue an Alternative Dispute Resolution method within 21 days of the counterclaim.

If it does transpire that the Protocol has been ineffective in procuring a settlement, then court proceedings can be commenced as a last resort.

Let us advise and represent you on your building dispute. You can trust that we will always be on your side, protecting your best interests.

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