What Adjudication Means

In simple terms, adjudication is a fast-track way to resolve a construction dispute. Instead of going to court, which can take months or years, you put your case to an independent adjudicator, who reviews the evidence from both sides and issues a decision within 28 days.

That decision is binding straight away. If you win, the other party has to pay you, even if they're unhappy with the outcome and want to challenge it later through the courts. In practice, this makes adjudication one of the most effective tools a subcontractor has for unlocking cash that's being wrongly withheld.

Adjudication is most commonly used for disputes over non-payment, unjustified deductions, contra-charges, extensions of time, and loss and expense claims — the exact issues that most often affect subcontractor cash flow.

Your Statutory Right (Construction Act 1996)

Here's the part most subcontractors don't realise: you don't need permission to use adjudication, and you don't need your contract to specifically allow it.

The Housing Grants, Construction and Regeneration Act 1996 (often called "the Construction Act") gives either party to a qualifying construction contract the statutory right to refer a dispute to adjudication at any time. Even if your subcontract is silent on the subject, or tries to exclude it, the law implies this right into the contract automatically.

This is what makes adjudication so powerful it's not a favour the main contractor grants you, it's a legal entitlement you already have.

The Step-by-Step Timeline

1. Notice of Adjudication: You (or your representative) serve a formal notice setting out the dispute and what you're claiming.
2. Adjudicator appointed: An independent adjudicator is appointed, usually within 7 days, often via a nominating body such as the RICS or CIArb.
3. Referral submitted: You submit your full case within 7 days of the notice — your evidence, valuation, and legal/contractual basis for the claim.
4. Response: The other party submits their response, disputing or accepting points as they see fit.
5. Reply: You have the opportunity to reply to any new points they've raised.
6. Decision: The adjudicator issues a binding decision within 28 days of the referral (extendable by 14 days with your agreement).

From start to finish, most adjudications are resolved in around a month, dramatically faster than litigation or arbitration.

Adjudication vs Arbitration vs Litigation

Adjudication — Fast (28 days), lower cost, binding immediately (though it can later be challenged through litigation or arbitration if either party pursues it). Best suited to payment and contractual disputes that need resolving quickly.

Arbitration — A private process similar to court, but conducted by an arbitrator rather than a judge. Typically used where the contract specifies it, or for more complex, higher-value disputes. Slower and more costly than adjudication.

Litigation — Formal court proceedings. The most thorough route, but also the slowest and most expensive — often taking a year or more, with legal costs to match.

For most subcontractor payment disputes, adjudication offers the best balance of speed, cost, and enforceability — which is why it's used far more often than the other two routes.

What It Costs

Costs vary depending on the complexity of the dispute and who represents you, but broadly:

• The adjudicator's fees are typically split between both parties, or awarded against the losing party at the adjudicator's discretion
• If you use a specialist consultant, fixed-fee and no-win-no-fee arrangements are often available, giving you cost certainty upfront
• Solicitors typically bill hourly, which can make costs less predictable

Because adjudication is fast, total costs are usually far lower than litigation or arbitration simply due to the shorter timeframe involved.

What Happens After the Decision

Once the adjudicator issues their decision, it's binding immediately the paying party must comply, typically within 7 days unless the decision states otherwise.

In the vast majority of cases, that's the end of the matter: the decision is paid and the dispute is resolved. If the other party refuses to pay, the decision can be enforced through the courts via a summary judgment process, which is generally quick and difficult to resist.

Either party can still pursue litigation or arbitration afterwards if they want the dispute reconsidered on a final basis but in practice, this is relatively rare, because most parties treat the adjudicator's decision as final.

Getting Help

You don't have to run an adjudication yourself. Most subcontractors bring in a specialist to prepare the notice, build the referral, and manage the process end to end, so you get the outcome without the time drain.



RJH Consulting has represented subcontractors in over 200 adjudications, with consistent success recovering payment that was wrongly withheld. If you think you might have a case, a free strategy session is the fastest way to find out.