What alternative dispute resolution means in construction
Alternative dispute resolution in construction refers to the range of processes used to resolve disputes outside of traditional litigation, typically offering greater speed, confidentiality and flexibility. Options include statutory adjudication under the Housing Grants, Construction and Regeneration Act 1996, mediation facilitated by an independent mediator, arbitration under a contractual clause or agreed terms, and independent expert determination for technical or valuation issues. The right process depends on your contract, the nature of the dispute and your commercial priorities.
Adjudication: fast, enforceable decisions
Adjudication is a “pay now, argue later” mechanism designed to maintain cash flow. A dispute can be referred at any time once it has crystallised, with a decision usually issued within 28 days of the referral. Decisions are binding on an interim basis and commonly enforced swiftly in the Technology and Construction Court. Our team handles every stage: drafting the notice of adjudication, selecting or challenging the adjudicator, preparing persuasive referral submissions, managing evidence and safeguarding jurisdiction to minimise enforcement risk.
Mediation: confidential negotiation with structure
Mediation offers a confidential forum where a neutral mediator helps parties explore settlement. It is flexible, relatively low cost and preserves relationships. We prepare robust position papers and negotiation strategies, ensuring you enter the mediation with clear settlement parameters, a realistic assessment of risk and properly drafted settlement documentation to conclude any agreement on the day.
Arbitration: private, expert finality
Arbitration is frequently specified in construction and engineering contracts, particularly for larger or international projects. Proceedings are private, the tribunal can be chosen for technical expertise and awards are final and enforceable. We advise on appointing the tribunal, procedural strategy, evidence (including delay and quantum analysis) and advocacy, coordinating with counsel and experts where required to deliver a cohesive case.
Expert determination and early neutral evaluation
For valuation or technical disagreements, expert determination can deliver a quick and cost-effective answer by a recognised specialist. Early neutral evaluation offers a non-binding assessment from an experienced evaluator, often helping parties narrow issues and settle. We draft tight terms of reference, curate the technical evidence and manage the process to ensure clarity on the questions posed and the authority of the outcome.
How we can help
We offer a complete construction dispute resolution service aligned to your programme and commercial drivers.
- Rapid response for payment, pay less notice and suspension disputes
- Adjudication strategy, referrals, responses, rejoinders and jurisdictional challenges
- Mediation advocacy and settlement negotiation
- Arbitration case management, pleadings and hearing advocacy with counsel
- Expert determination terms, evidence and submissions
- Early neutral evaluation and without prejudice meetings
- Final account, variations, delay and disruption, defects, design liability and retention disputes
- Interaction with the Technology and Construction Court for enforcement or urgent injunctions
- Drafting clear tiered dispute resolution clauses for JCT, NEC and bespoke contracts
We understand the documents that move the needle: programmes, as-built records, site diaries, correspondence, notices, valuations, delay analyses and expert reports. Our team brings these together quickly and coherently to support your position in whichever forum is chosen.
Why choose us
Stephensons is a national, full-service law firm with a strong contentious practice. We are experienced in resolving complex, time-critical disputes and in protecting our clients’ interests in high-stakes forums. That same tenacity that sees us act in hard-fought regulatory and criminal defence matters informs our approach to construction disputes: thorough preparation, clear strategy and decisive advocacy.
Clients choose us for our sector insight, commercial pragmatism and transparent communication. We act for businesses of all sizes, from specialist subcontractors and consultants to major contractors, developers and public bodies. We manage cost proactively and will discuss fixed or staged fees where appropriate, aligning our approach to the value and urgency of the dispute.
Stephensons is regulated by the Solicitors Regulation Authority and committed to the highest professional standards. Our construction disputes specialists work seamlessly with colleagues across commercial, real estate, regulatory and employment teams to deliver joined-up advice when disputes touch multiple legal issues.
Our process and timescales
On instruction, we triage the dispute to recommend the most effective route: adjudication for immediate cash flow, mediation for relationship-driven outcomes, arbitration for finality and privacy, or a hybrid approach. We then map milestones and evidence requirements to your programme. In adjudication, we can typically prepare and serve a notice within days and aim to deliver a comprehensive referral pack inside the short statutory window. Where court support is needed, we move promptly to secure or resist enforcement in the Technology and Construction Court.
Costs and funding
We will provide clear cost estimates from the outset. In adjudication, each party ordinarily bears its own legal costs, though the adjudicator may apportion their fees. In mediation, costs are modest compared to formal proceedings and are usually shared. Arbitration costs vary with the tribunal and procedure adopted. We discuss funding options, including fixed fees for defined stages and phased budgeting aligned to case milestones.
Who we act for
We advise employers, developers, main contractors, specialist subcontractors, consultants, design professionals, suppliers, housing providers and public sector bodies. We are fluent in the major standard forms and bespoke contracts and understand the commercial realities of live projects and legacy final accounts alike.
Frequently asked questions
What is alternative dispute resolution construction and when should I use it?
It refers to processes used to resolve construction disputes without full court proceedings, principally adjudication, mediation, arbitration, expert determination and early neutral evaluation. Use ADR where speed, confidentiality, cost control or technical expertise are priorities. Contract terms and the stage of the project often guide the best choice.
Is adjudication compulsory?
If your contract is a construction contract under the 1996 Act, either party has a statutory right to adjudicate at any time. Many contracts also include detailed adjudication provisions; if they are non‑compliant, the statutory Scheme is implied.
How long does adjudication take?
The adjudicator’s decision is usually due within 28 days of the referral. This can be extended by agreement or in certain cases by the adjudicator. Preparatory steps before the referral can materially improve outcomes within this tight timetable.
Are adjudicator’s decisions binding?
They are binding on an interim basis and must be complied with unless and until finally determined by arbitration, litigation or agreement. They are routinely enforced by the Technology and Construction Court unless there is a fundamental jurisdictional or natural justice issue.
Can I recover my legal costs in adjudication?
Generally, each party bears its own legal costs unless the contract expressly allows the adjudicator to award them. The adjudicator can allocate their own fees between the parties. We address cost exposure early and focus on proportionate case strategy.
What is the difference between mediation and arbitration?
Mediation is a without prejudice negotiation facilitated by a neutral mediator; any settlement is voluntary. Arbitration is a formal process where a tribunal issues a binding award, broadly similar to a court judgment but private and usually more flexible on procedure and tribunal expertise.
What documents will I need?
Key items include the contract and amendments, payment and pay less notices, applications and valuations, programmes and delay analysis, instructions and variations, correspondence, site records, meeting minutes, photographs and relevant expert reports. We will help prioritise and present evidence effectively.
What happens if the other side refuses mediation?
The court expects parties to consider ADR seriously. An unreasonable refusal can have cost consequences in subsequent litigation. We document ADR invitations and advise on alternatives where mediation is declined.
Will my dispute be kept confidential?
Mediation, expert determination and arbitration are typically private. Adjudication decisions are not automatically public, though enforcement proceedings in the court are a matter of public record. We advise on confidentiality and privilege at the outset.
Prevention and contract support
Effective dispute resolution starts with clear drafting and disciplined contract administration. We review and draft tiered dispute resolution clauses, advise on notice and payment regimes under JCT and NEC forms, and deliver training for project teams on records, risk allocation and early issue management to reduce the likelihood of disputes escalating.
Contact us
For immediate, practical advice on alternative dispute resolution construction, call Stephensons on 0161 696 6170. Alternatively, fill in our enquiry form to request a call back from one of our construction dispute specialists.
