The cost of construction adjudication varies depending on the complexity of the case. For parties using the RICS service, the application fee for the nomination of a construction adjudicator is £425 inclusive of VAT. This fee ensures that a qualified and experienced adjudicator is appointed to resolve the dispute in a timely manner.
What is Adjudication in Construction?
Adjudication is a legally mandated process under the Housing Grants, Construction and Regeneration Act 1996 (the Construction Act) that allows any party to a construction contract in the UK to resolve disputes swiftly and cost-effectively. This process typically concludes within 28 days, during which an independent adjudicator, who is an expert in the relevant subject matter, makes a binding decision on the dispute that must be adhered to.
What is the Difference Between Adjudication and Arbitration?
While both adjudication and arbitration are effective methods of dispute resolution;
- Adjudication is designed for quicker resolution, usually within 28 days, making it ideal for construction disputes that require immediate attention.
- Arbitration, in contrast, often involves a longer, more detailed process, suitable for more complex disputes that require thorough examination.
The construction adjudication process begins when one party issues a Notice of Adjudication. This is followed by the appointment of an adjudicator, typically through an Adjudicator Nomination Body (ANB) like RICS. The adjudicator reviews the submissions from both parties and uses their expertise to make a binding decision, which must be adhered to immediately. This decision, although binding, can later be reviewed by a court or an arbitrator if necessary.
The adjudication process is governed by strict timelines set out in the Construction Act. From the issue of the Notice of Adjudication, the adjudicator is required to reach a decision within 28 days. This rapid timeline ensures that disputes are resolved promptly, allowing work on construction projects to continue with minimal disruption.
Apart from a few exceptions, all construction contracts in the UK must use adjudication as a first instance formal dispute resolution procedure. Construction adjudication can resolve many types of disputes due to its fast and efficient methods. However, for further advice, assessing the specifics of your case is essential. For further legal advice, you can speak to a RICS professional.
Apply for Construction Adjudication
If you need to resolve a construction dispute, you can apply for the nomination of a construction adjudicator through RICS. As the UK's leading Adjudicator Nomination Body, RICS ensures that your dispute is handled by a professional who will normally deliver a decision within the statutory 28-day period.
Download the application form (PDF 0.16MB)
Published date: 06 December 2023
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