The following Construction guidance note provides comprehensive and up to date legal information covering:
Produced in association with 4 Pump Court
A valid adjudicator’s decision is binding and enforceable and parties are obliged to comply with its terms.
Most standard forms of construction contracts expressly provide that an adjudicator’s decision is binding and that parties shall comply with it.
An adjudicator’s decision does not have the status of a judgment. A decision therefore cannot be enforced in the same way as a court judgment. Further, there is no provision in the Housing Grants, Construction and Regeneration Act 1996 (HGCRA 1996) (in its original form and as amended by the Local Democracy, Economic Development and Construction Act 2009 (LDEDCA 2009)) corresponding to section 66 of the Arbitration Act 1996 which provides for an decision to be enforced in the same way as a judgment. To enforce an adjudicator’s decision, therefore involves bringing enforcement proceedings, usually in the Technology and Construction Court (TCC), to obtain a court judgment on the adjudicator’s decision which can then be enforced.
Neither the HGCRA 1996 nor the Scheme for Construction Contracts provide a method of enforcing an adjudicator’s decision.
Challenges to an adjudicator's jurisdiction and, consequently, the validity of the adjudicator's decision are frequent and result in the losing party deciding not to pay or comply with the adjudicator's decision. Sometimes the losing party decides for commercial reasons not to
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