Introduction to adjudication clauses
Introduction to adjudication clauses

The following Construction guidance note provides comprehensive and up to date legal information covering:

  • Introduction to adjudication clauses
  • Common features of adjudication clauses in construction contracts

There are an array of different types of dispute resolution clauses, providing for various mechanisms by which parties' disputes can be resolved.

Adjudication clauses most commonly appear in construction contracts, principally because the Housing Grants, Construction and Regeneration Act 1996 (HGCRA 1996) requires that all construction contracts provide for a compliant adjudication procedure. If the contract does not contain compliant adjudication provisions, the provisions in the Scheme for Construction Contracts (the Scheme) will apply (by virtue of the HGCRA 1996, s 108(5)).

Generally, an adjudication clause sets out the procedure or rules which will apply if either party chooses to commence an adjudication. See Precedent: Adjudication clause—construction contracts. However, parties may include a clause that makes adjudication a mandatory step, rather than just an optional one. For example, under the NEC standard form contracts, adjudication is a mandatory step in the dispute resolution process—see Practice Note: NEC contracts—dispute resolution.

The HGCRA 1996 specifies