What adjudication involves
Adjudication is available for most construction contracts under the Housing Grants, Construction and Regeneration Act 1996, as amended. It typically runs to a 28‑day timetable from referral, with a short extension possible. An independent adjudicator is appointed by agreement or via a nominating body such as RICS, TeCSA or CIArb. The adjudicator’s decision is binding on an interim basis and is usually enforced by the court on a summary basis unless there is a clear jurisdictional or natural justice error.
In public sector construction disputes, adjudication commonly addresses issues such as non‑payment of interim applications, validity of payment or pay less notices, valuation of variations, extensions of time, loss and expense, defects and termination. It also accommodates NEC3/NEC4 dispute procedures, framework arrangements and complex supply chains, provided the contract is a construction contract for the purposes of the legislation.
Why adjudication matters in the public sector
Public programmes are often linked to fixed funding windows, public procurement rules and high visibility milestones. Adjudication provides a rapid, proportionate forum to resolve disputes without derailing delivery. It supports prompt payment objectives while preserving the parties’ ability to litigate or arbitrate later if needed. For authorities, it helps demonstrate active contract management; for suppliers, it protects cash flow and mitigates the impact of contested valuations or time‑related claims.
Key legal features to be aware of
Statutory framework: if a public works or services contract fails to meet the Construction Act’s payment and adjudication requirements, the Scheme for Construction Contracts may imply essential terms. Any bespoke procedure must still allow a party to adjudicate at any time.
Payment notices: strict compliance is vital. Disputes frequently turn on whether the payer issued a valid payment or pay less notice, the notified sum, and the timing of applications. Where no effective notice was served, a so‑called “smash and grab” adjudication may succeed, subject to subsequent true value proceedings once the notified sum is paid.
Jurisdiction: challenges arise around whether there is a construction contract, whether multiple disputes have been referred, or whether a new dispute was introduced mid‑process. Careful scoping of the notice of adjudication is essential.
Insolvency: following Supreme Court authority, a company in liquidation may refer a dispute to adjudication, but enforcement can be complex and may require suitable undertakings or security.
Public law and procurement overlay: procurement obligations, standing orders and audit requirements do not displace statutory adjudication but can affect approvals, disclosure and settlement strategy. Freedom of information considerations may also arise; confidentiality is not absolute and should be managed from the outset.
How the process works
Step 1: strategy and notice. We assess objectives, jurisdiction, evidence and risk before issuing or responding to a notice of adjudication that defines the dispute with precision.
Step 2: appointment. An adjudicator is appointed by agreement or through a nominating body identified in the contract or by default under the Scheme.
Step 3: referral and evidence. Within 7 days of the notice, the referring party serves the referral with witness, expert and quantum material. The responding party then serves its response, and further short submissions may follow.
Step 4: decision. The adjudicator issues a reasoned decision within 28 days of referral unless extended. The decision is temporarily binding and should be complied with promptly.
Step 5: enforcement and follow‑on steps. If necessary, we seek rapid enforcement in the Technology and Construction Court, often via summary judgment. We also advise on any subsequent true value proceedings, settlement or alternative dispute resolution.
Common pitfalls we help you avoid
Defective notices and timelines: mistakes in payment schedules and pay less notices are frequent and can be outcome‑determinative.
Scope creep: adding fresh disputes after the notice risks jurisdictional challenge and partial unenforceability.
Insufficient evidence: valuations, delay analysis and defects need coherent contemporaneous support; we coordinate the right expert input quickly.
Process fairness: ensuring each side has a fair opportunity to present its case reduces natural justice challenges at enforcement.
Sectors and contract forms we cover
We act in disputes across local government, NHS and healthcare, education, blue light services, central government agencies, housing providers and defence. Our experience spans NEC3 and NEC4 options, JCT public sector variants, framework call‑offs, PFI/PPP legacy arrangements and complex sub‑contracts in building, civils, M&E and FM.
Why choose us
Specialist expertise: Stephensons’ construction disputes lawyers deliver focused, time‑critical advocacy in adjudication, combining sector knowledge with rigorous case preparation and persuasive written submissions.
Quality and recognition: we hold the Law Society’s Lexcel practice management quality mark and our teams are regularly recommended by leading legal directories. Our reputation in contentious work, including complex regulatory and criminal matters, reflects our ability to handle urgent, high‑stakes issues with care and precision.
Balanced public and private sector insight: we act for contracting authorities and for contractors, giving us a 360‑degree view of governance, audit expectations and commercial realities.
Clear pricing: we offer staged fixed fees and capped arrangements for adjudication where appropriate, together with transparent scoping so you can plan with confidence.
How we can help
Rapid pre‑action triage: we test adjudication readiness, identify jurisdictional levers, map the timetable and build a winning theory of the case.
Acting as referring or responding party: we draft notices, referrals, responses, replies and witness statements; manage disclosure; and instruct and brief delay, quantum and technical experts.
Emergency strategy on payment disputes: we prosecute or defend notified sum claims, payment notice challenges and pay less notice disputes, including follow‑on true value proceedings.
Complex valuation and delay claims: we assemble robust valuation and programme evidence suitable for both adjudication and any subsequent litigation or arbitration.
Enforcement and challenges: we pursue or resist enforcement in the Technology and Construction Court and advise on Part 8 challenges where genuine jurisdictional or natural justice issues arise.
Settlement and risk management: we leverage adjudication outcomes to negotiate pragmatic settlements, and we advise on contract drafting to reduce future dispute risk on live projects.
Funding and value for money
We align our service with public sector governance and supplier cash‑flow constraints. Options include time‑based billing with caps, stage‑based fixed fees for discrete steps and blended teams to keep costs proportionate to the sums and issues in dispute.
Frequently asked questions
Can I use adjudication on a public sector project? In most cases, yes. If the contract is a construction contract under the legislation, statutory adjudication applies. Many public sector contracts, including NEC and JCT variants, expressly provide for it.
How long does adjudication take? The default timetable is 28 days from the referral, extendable by agreement or in limited circumstances by the adjudicator. We front‑load preparation to make every day count.
What is a “smash and grab” adjudication? It is a claim for payment of the notified sum where the payer failed to issue a compliant payment or pay less notice. The payer may later pursue a true value assessment, usually after paying the notified sum.
Will the decision be confidential? Adjudication is private between the parties, but public bodies face potential freedom of information requests. We advise on confidentiality markings, exemptions and disclosure strategy.
Can multiple disputes be referred at once? Only if they are part of the same or closely connected dispute and the contract permits it. Otherwise, bundling can cause jurisdictional problems. We help you structure referrals correctly.
Can I recover my costs? Each party generally bears its own costs, unless the contract validly provides otherwise. The adjudicator’s fees are usually shared as directed in the decision. We focus on proportionate case design to control spend.
What if the other side ignores the decision? We move quickly to enforce in the Technology and Construction Court, typically via summary judgment. The court enforces most decisions unless there is a clear jurisdictional or natural justice flaw.
Does insolvency stop adjudication? Not necessarily. Insolvent companies can adjudicate, but enforcement may require safeguards such as security for any potential repayment. We advise on the risks and protections needed.
Our recent work
Examples include urgent notified sum adjudications on NEC4 public realm projects, complex final account valuations on hospital refurbishments, extension of time disputes on education frameworks and enforcement proceedings following successful adjudications on civic building schemes. We tailor our approach to the technical and governance context of each matter.
Contact us
For immediate advice on adjudication in public sector construction disputes, call Stephensons on 0161 696 6170. If you prefer, fill in our enquiry form and we will call you back. We act nationwide and can mobilise quickly to meet tight adjudication deadlines.
