Holmes & Hills’ construction adjudication solicitors advise contractors and subcontractors across the UK on bringing, defending and enforcing adjudications.
Based in Essex and Suffolk, our Construction Team acts for clients throughout East Anglia, London and across the country.
Whether you are owed money, facing substantial deductions or have received a Notice of Adjudication, we can quickly assess your position and advise you on the best way forward.
Adjudication moves quickly. Once a Notice has been served, the Referral Notice will usually follow within seven days. The responding party may then have only a short period in which to prepare its defence.
Early advice and proper preparation can make a significant difference.
Adjudication provides a fast method of resolving construction disputes without waiting for conventional court proceedings. An independent adjudicator will normally reach a decision within 28 days of receiving the Referral Notice.
The process can be used during a live project or after the parties’ work together has ended. It is particularly effective where an unresolved payment dispute is affecting cash flow.
Our construction solicitors advise on adjudications concerning:
We act primarily for main contractors, specialist contractors and subcontractors. We also represent employers, developers, consultants and other construction professionals where adjudication is commenced or threatened against them.
A party to a qualifying construction contract will generally have the right to refer a dispute to adjudication at any time.
Before commencing an adjudication, it is important to establish precisely what dispute has arisen, which contract applies and what outcome is being sought. The wording of the Notice of Adjudication will usually define the adjudicator’s jurisdiction, so mistakes made at the outset can restrict the claim or create grounds for a jurisdictional challenge.
We will review the contract, payment history, notices, correspondence and project records before advising on the merits and commercial value of the proposed claim.
Where adjudication is appropriate, we can prepare the Notice of Adjudication and Referral Notice, deal with the appointment of the adjudicator and conduct the proceedings through to the decision.
We will also consider whether the responding party is likely to be able to pay. A successful decision has limited commercial value if the other party becomes insolvent before payment can be recovered.
If you have received a Notice of Adjudication, you should obtain specialist advice immediately.
The Referring Party may have spent weeks preparing its case. The Responding Party will usually have considerably less time to examine the claim, collect the project records and prepare its Response.
We will first examine whether the adjudicator has jurisdiction and whether the claim described in the Notice properly reflects the dispute between the parties. We will then identify the relevant contractual, factual and procedural defences and prepare the Response and supporting evidence.
Where appropriate, we can also advance a set-off, counterclaim or alternative valuation and preserve any jurisdictional objections that may later be relevant to enforcement.
A Notice should not be ignored, even if you consider the claim to be unfounded. The adjudicator may proceed and reach a decision without a substantive Response.
Where a valid payment application has been made and the paying party has failed to issue an effective payment notice or pay less notice, the amount applied for may become the notified sum.
A claim seeking payment of that sum is sometimes described as a “smash-and-grab” adjudication.
These disputes can turn on technical questions about the form, wording, service and timing of the relevant notices. Before commencing or defending this type of adjudication, we will examine the contract and the complete payment history to determine whether a valid notified sum has arisen.
We also advise on subsequent true value adjudications concerning the proper valuation of the works.
Winning a decision is not always the only measure of a successful adjudication strategy.
The commencement of adjudication can focus attention on a dispute and create an opportunity for meaningful commercial negotiations. Where a wider settlement is available, it may be preferable to resolve the parties’ overall relationship rather than continue to a decision on one isolated issue.
In one recent matter, our client had spent between three and six months attempting to resolve outstanding payment disputes with a developer. Despite repeated promises, there had been no meaningful progress.
We prepared and served three separate Notices of Adjudication. This resulted in immediate engagement from the developer’s in-house solicitor and negotiations began.
Rather than proceeding with three concurrent adjudications, the parties reached a global settlement under which our client recovered 70% of the total sum outstanding. The wider framework arrangements were also brought to an agreed conclusion, allowing both parties to move forward without the cost and uncertainty of continuing proceedings.
We treat adjudication as a means of achieving a commercial objective, rather than an end in itself.
The Referral Notice will normally be served within seven days of the Notice of Adjudication. The adjudicator will then usually be required to reach a decision within 28 days.
The 28-day period can be extended by 14 days with the agreement of the Referring Party, or for a longer period where both parties agree.
The compressed timetable makes adjudication much faster than court proceedings, but it also means that the parties and their advisers must be properly prepared.
An adjudicator’s decision is ordinarily binding unless and until the dispute is finally determined through court proceedings, arbitration or agreement.
If the unsuccessful party refuses to comply, the successful party can usually apply to the Technology and Construction Court for enforcement by summary judgment.
The courts generally support the prompt enforcement of adjudicators’ decisions. The grounds for resisting enforcement are limited and commonly concern a material lack of jurisdiction or a serious breach of natural justice.
Holmes & Hills acts in adjudication enforcement proceedings and can advise on payment demands, Technology and Construction Court applications, jurisdictional challenges and applications for a stay of execution.
We acted for Westgreen Construction Limited in successful Technology and Construction Court proceedings after the other party failed to comply with an adjudicator’s decision worth approximately £650,000.
Read the Westgreen enforcement case study.
We represented a specialist scaffolding contractor in an adjudication involving a dispute over the applicable contract terms. The adjudicator found substantially in our client’s favour.
Read the scaffolding adjudication case study.
Following several months of delay, three Notices of Adjudication brought about immediate negotiations with a developer. Our client recovered 70% of the outstanding account through a global settlement.
Read the global settlement case study.
Every dispute depends on its own circumstances. Previous outcomes do not guarantee a similar result in another matter.
Holmes & Hills has a dedicated Construction Team advising clients across the UK.
Our experience acting for contractors and subcontractors means we understand the commercial realities behind payment applications, project records, contractual notices and cash flow throughout the construction supply chain.
We advise on JCT, NEC and bespoke construction contracts and have experience of conducting adjudications from the initial assessment through to Technology and Construction Court enforcement.
The Construction Team is independently recognised by Chambers and Partners and The Legal 500. We also work closely with trade organisations representing specialist contractors operating in scaffolding, shopfitting, metal roofing and leadwork.
Our advice is direct, practical and focused on the commercial result the client needs to achieve.
Construction adjudication is a rapid dispute resolution procedure used in the construction industry. An independent adjudicator considers the parties’ submissions and will normally issue a temporarily binding decision within 28 days of receiving the Referral Notice.
Yes. A formally signed contract is not always required. However, the absence of a signed agreement can create disputes about whether a contract was formed, its terms and the adjudicator’s jurisdiction. These matters should be considered before a Notice is served.
Yes. A dispute can generally be referred to adjudication after completion or termination, provided that the right to adjudicate applies and the dispute falls within the adjudicator’s jurisdiction.
Obtain specialist advice immediately and preserve the relevant contract, notices, correspondence and project records. The Referral Notice will usually follow within seven days, after which the deadline for your Response may be very short.
Each party will ordinarily bear its own legal and professional costs. The adjudicator will generally decide how their fees and expenses are allocated between the parties. Different considerations can apply depending on the contract and the circumstances of the adjudication.
The decision is usually binding unless and until the dispute is finally determined by litigation, arbitration or agreement. In practice, many decisions are accepted by the parties as resolving the dispute.
Yes. Negotiations can continue throughout the process. Commencing an adjudication will sometimes create the commercial focus needed to reach a settlement without requiring the adjudicator to issue a decision.
If you are considering adjudication, facing an unpaid account or have received a Notice of Adjudication, speak to our Construction Team as soon as possible.
We will discuss the dispute, the immediate deadlines and the commercial outcome you want to achieve before advising on the appropriate next steps.
Call us on 01206 593933 and get expert advice from a specialist Construction Law solicitor. Or complete the form below.
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