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Adjudication in Construction Law


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CHAPTER 1

Statutory regulation of construction contracts

Statutory regulation of construction contracts


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1.1 Definitions

1.1 Adjudication is, conventionally, the process of judging, a court's pronouncement of a judgment or decree or the judgment so given.1 It has been said that a judge or an arbitrator adjudicates and in this sense adjudication is or should therefore be synonymous with a judicial process.2 From 1976, standard forms of construction sub-contracts began to contain provisions for an ‘adjudicator’ to decide disputes between the sub-contractor and the main contractor as to the entitlement to payment pending a final resolution by arbitration.3 The use of such provisions was adopted in other forms during the 1980s and by 1992, ‘adjudication’ could be defined as a procedure where, by contract, a summary interim decision-making power in respect of disputes was vested in a third party individual (the adjudicator) who was usually not involved in the day-to-day performance or administration of the contract, and was neither an arbitrator nor connected with the state.4 A party to a construction contract regulated by Part II of the Housing Grants, Construction and Regeneration Act 1996 now has the right5 to refer a dispute arising under the contract for adjudication under a procedure complying with the requirements of section 108 of that Act. The word ‘adjudication’ is thus commonly used now to denote the process whereby a decision is reached pursuant to the provisions of the Act. A fuller definition has been suggested as that of a process by which within a short and defined time, and with a curtailed procedure left primarily to the adjudicator, all disputes under most construction contracts have to be presented to


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and decided by a person who will not be the arbitrator or the judge (unless of course the parties agree) where the decision is binding (and is swiftly enforceable) until the dispute is considered on its own merits by the ultimate tribunal, without regard to the decision of the adjudicator, so that there is, in this sense, no appeal from the adjudicator but, until that time arrives, there are very limited means of questioning the result of the adjudication.6

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