How does construction adjudication work under the Construction Act?
Either party to a construction contract in England can refer any dispute to adjudication at any time, not only a payment dispute. A notice of adjudication starts it, the dispute is referred to the adjudicator within 7 days, and the decision is due within 28 days of referral. The decision binds until the dispute is finally determined.
Notice, referral, decision
The notice of adjudication can be given at any time. The referral follows within 7 days of the notice, and the decision is due within 28 days of referral. Under the English Scheme the 28 days run from receipt of the referral notice, 42 with the referring party's consent, and if the decision is late any party may serve a fresh notice and start again (Scheme Pt I para 19).
What the Act requires
These come from the Act itself, for every construction contract it covers.
| Duty | Window and section | If missed |
|---|---|---|
| Give notice of intention to refer a dispute under the contract to adjudication, at any time | none setThe contract must let a party give notice at any time (s 108(2)(a)), so no window is recorded.s 108(1), 108(2)(a), 108(5) | no penalty statedDisputes |
| Refer the dispute to the adjudicator within 7 days of the notice of adjudication | 7 dayss 108(2)(b) | no penalty statedDisputes |
| Receive the adjudicator's decision within 28 days of referral, or up to 14 days later with the referring party's consent, or later if both parties agree | 28 dayss 108(2)(c)-(f), 108(3), 108(3A), 108(4) | a breach of contractDisputes |
| Be paid any amount an adjudicator decides above the notified sum within 7 days of the decision, or by the original final date for payment if later | 7 dayss 111(8), 111(9) | you are liable for the full amountDisputes |
What the Scheme sets where the contract does not
Scheme only, England: applies where the contract does not meet Act s 108(1) to (4). Where the contract's own adjudication clause meets the Act, its procedure applies instead.
| Duty | Window and section | If missed |
|---|---|---|
| Give the notice of adjudication in writing to every other party, setting out the dispute, where and when it arose, the redress sought, and the parties' names and addresses | none setreg 2; Sch Pt I para 1(1)-(3) | no penalty statedDisputes |
| Ask the named adjudicator or a nominating body to act after the notice of adjudication; a nominating body must select an adjudicator within 5 days of the request | 5 daysreg 2; Sch Pt I para 2, 3, 4, 5, 6 | no penalty statedDisputes |
| Comply with an adjudicator's decision immediately on its delivery, unless the adjudicator directs a time, and until the dispute is finally determined | none set'Immediately', with no day count, so no window is recorded.reg 2; Sch Pt I para 20(b), 21, 23(2) | a breach of contractDisputes |
What the library notes on each duty
Quoted a whole sentence at a time from the library's note on each row.
Give notice of intention to refer a dispute under the contract to adjudication, at any time
s 108(1), 108(2)(a), 108(5) · none set · no penalty stated
- Either party may refer any dispute arising under the contract, and a dispute includes any difference (s 108(1)); not only payment disputes.
- The contract must let a party give notice at any time (s 108(2)(a)), so no window is recorded.
Give the notice of adjudication in writing to every other party, setting out the dispute, where and when it arose, the redress sought, and the parties' names and addresses
reg 2; Sch Pt I para 1(1)-(3) · none set · no penalty stated
- Scheme only, England: applies where the contract does not meet Act s 108(1) to (4).
- No consequence is stated for a notice that omits an item.
Ask the named adjudicator or a nominating body to act after the notice of adjudication; a nominating body must select an adjudicator within 5 days of the request
reg 2; Sch Pt I para 2, 3, 4, 5, 6 · 5 days · no penalty stated
- Scheme only, England.
- The referring party asks the person named in the contract, else the nominating body the contract names, else any adjudicator nominating body, sending a copy of the notice of adjudication (paras 2(1), 3).
- A person asked must say within 2 days of the request whether they will act (paras 2(2), 5(3), 6(2)).
- A nominating body must communicate its selection within 5 days of the request; if it does not, the referring party may agree a person with the other party or ask another body (para 5).
- The adjudicator must be a natural person, not an employee of a party, and must declare any interest (para 4).
Refer the dispute to the adjudicator within 7 days of the notice of adjudication
s 108(2)(b) · 7 days · no penalty stated
- The Act requires the contract to give a timetable with the object of securing the appointment of the adjudicator and referral within 7 days of the notice (s 108(2)(b)).
- The hard 7 days is the contract's or the Scheme's: in England, the referring party must refer in writing not later than 7 days from the date of the notice, with copies or extracts of the contract and the documents it relies on, copied to every other party at the same time (Scheme Pt I para 7(1)-(3)).
- Neither the Act nor the Scheme states a consequence for a late referral.
Receive the adjudicator's decision within 28 days of referral, or up to 14 days later with the referring party's consent, or later if both parties agree
s 108(2)(c)-(f), 108(3), 108(3A), 108(4) · 28 days · a breach of contract
- The contract must require the decision within 28 days of referral, or a longer period the parties agree after referral, and let the adjudicator extend by up to 14 days with the referring party's consent (s 108(2)(c), (d)).
- The decision binds until the dispute is finally determined by legal proceedings, arbitration or agreement (s 108(3)); the adjudicator may correct a clerical or typographical slip (s 108(3A)).
- Under the English Scheme the 28 days run from receipt of the referral notice, 42 with the referring party's consent, and if the decision is late any party may serve a fresh notice and start again (Scheme Pt I para 19).
Comply with an adjudicator's decision immediately on its delivery, unless the adjudicator directs a time, and until the dispute is finally determined
reg 2; Sch Pt I para 20(b), 21, 23(2) · none set · a breach of contract
- Scheme only, England.
- The decision binds and the parties must comply until the dispute is finally determined by legal proceedings, arbitration or agreement (para 23(2)).
- As an implied term (Act s 114(4)), failure to comply is a breach of contract; the Scheme states no other consequence.
Be paid any amount an adjudicator decides above the notified sum within 7 days of the decision, or by the original final date for payment if later
s 111(8), 111(9) · 7 days · you are liable for the full amount
- Applies where a payment notice was given (and no pay less notice), or a pay less notice was given, and the adjudicator decides that more than the sum in that notice should be paid (s 111(8)).
- The decision is then read as requiring the additional amount not later than 7 days from the decision or the date that would have been the final date apart from the notice, whichever is later (s 111(9)).
Before adjudication
What makes a sum payable, and when, is on payment and pay less notices. Whether the Act covers the contract at all is on which contracts.
What this page is, and is not
It is the section text this library holds for England, from The Construction (Design and Management) Regulations 2015 (Great Britain), Housing Grants, Construction and Regeneration Act 1996, Part II (Construction Contracts) and The Scheme for Construction Contracts (England and Wales) Regulations 1998, as amended for England, with the window and the consequence. It is not legal advice, and it is not a substitute for reading the Regulations, the Act, the Scheme and the contract you signed.
Demiton does not yet track English projects. These pages set out the duties; the product does not run these checks on an English job today.
No library of law is complete, and Demiton never says this one is. An obligation the library does not hold, and you did not add, is not protected. You can add your own to any job.