Before referring a matter to adjudication it is important to be sure that this is a suitable course of action. The first steps in checking this is outlined on our checklist.
Once you have established that a referral to adjudication is the most appropriate step for you to take, then the following outlines how the process works:
The adjudication process
If your Construction Contract complies with the requirements of Section 108 of the Act, the adjudication will be as per the express terms in that contract and implied terms where stated.
If not then the Scheme applies as follows:
- a. A party to a Construction Contract with a dispute or difference (“Referring Party”) may give written notice (“Notice of Adjudication”) at any time to the party with whom it has the dispute or difference. (“Responding Party”)
- b. A Notice of Adjudication is served by the Referring Party to all other Parties of the Construction Contract. The recommendation is to serve with an addressed package, prepaid and delivered by post to the addressee’s last known principle residence or principle business address.
- c. The notice of Adjudication sets out briefly:
- The nature and description of the dispute and of the parties involved
- Details, where and when and how the dispute arose
- What is the nature of the redress or remedy being sought?
- Details of the parties to the contract.
- d. Appointment of the Adjudicator will be undertaken either where the parties have agreed, or where a named person has been provided for in the contract.
- Where either provision of the above is not an option, the contract may specify a nominating body (say MRICS or CIArb) and the referring party shall request an adjudicator from them.
- Finally, if none of these options are available to the Referring Party, they shall request an adjudicator nominating body to select a person to act as adjudicator. Such a request must be accompanied by a copy of the notice of adjudication.
- e. The adjudicator that has been requested will respond within two working days of receipt and state his position as to whether he will act.
- f. The adjudicator nominating body will communicate the selection of the adjudicator to the referring party within five days.
- g. Under the Scheme, the Referring Party will within seven days from the date of the notice of adjudication, refer the dispute to the Adjudicator. The referring party will serve a referral notice on the Adjudicator, responding party and all other parties to the dispute. The Referral Notice will set out in greater detail the extent and information to which they will rely upon.
- h. Directions for the timetable of the adjudication will be set by the Adjudicator and will set out the times for written statements of case to be served and other matters.
- i. Thereafter, the Adjudicator shall reach his final decision not later than 28 days after receipt of the Referral Notice or 42 days after receipt of the Referral Notice if the Referring Party consents or such period after the 28 days where there is agreement.