Adjudication is obligate dispute regulation that is required in construction industry of UK. Every contract should have adjudication provisions. It is based on Housing Grants, Construction and Regeneration Act 1996 (Construction Act 1996), The Local Democracy and Economic Development and Construction Act 2009 (Part 8), The Scheme for Construction Contracts (England and Wales) Regulations 1998 (Amendment) (England) Regulations 2011 is part of construction contract where parts cannot leave it. It is related to 28-day payment scheme (can be extended). The slogan “pay first, argue later” are very well known in adjudication case as it responds to disputes related to payments. Adjudication is applied when there is delay in work that must be provided, interim payments, on extension requests, handing of defective works or projects and while recalculating final costs of processes. If contract fails to provide adjudication provisions, then the “Construction” Acts require that the adjudication provisions to be imported construction contract as set out in Scheme.
Advantages of adjudication:
• Disputes related to construction can become expensive, so the adjudication allows you to file a payment deadline of 28 days. if this is not possible, it is possible to extend it up to 14 days
• In most cases, both parties agree with the decision
• Oral arguments or submissions are rarely observed in construction ruling cases
Disadvantages of adjudication:
• Non-recoverable fees
• Either party has the right to retrial the same dispute in court,
• For the losing party, this can be an expensive process in which money is lost in a short time due to the short pay-out period.
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