Q&As

When claiming interest in an adjudication, when does it run from, eg the date of the breach, the start of the adjudication or the date of the decision?

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Produced in partnership with Abdul Jinadu of Keating Chambers
Published on LexisPSL on 03/12/2018

The following Construction Q&A produced in partnership with Abdul Jinadu of Keating Chambers provides comprehensive and up to date legal information covering:

  • When claiming interest in an adjudication, when does it run from, eg the date of the breach, the start of the adjudication or the date of the decision?

When claiming interest in an adjudication, when does it run from, eg the date of the breach, the start of the adjudication or the date of the decision?

There is no free standing right to interest in an adjudication (see the Court of Appeal decision of Carillion Construction v Devonport Royal Dockyard). The adjudicator only has power to award interest if that issue has been referred to him/her, it has been agreed by the parties to be within the scope of the adjudication, it was a matter which the adjudicator considered to be within the scope of the adjudication, or it was a matter which the adjudicator considered to be necessarily connected with the dispute. The parties can give the adjudicator jurisdiction to consider questions of interest and, in so doing, confer on the adjudicator a jurisdiction to award interest that he or she would not otherwise have.

There are five possible bases on which the adjudicator can award interest:

  1. (1) the contract provides for interest and the issue of interest is referred to the adjudicator

  2. (2) the referring party seeks interest as damages for breach of contract

  3. (3) the parties agree that the adjudicator has jurisdiction to award interest

  4. (4) interest is considered to be necessarily connected with the

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