Adjudication ... bite size
Adjudication is a form of alternative dispute resolution which is often used in construction and engineering disputes.
To initiate adjudication, one party serves a 'notice of intention to proceed to adjudication' on his opponent and nominates an adjudicator. The adjudicator then request the parties to provide their written submissions.
The adjudicator must then come to his written decision within 28 days and their decision is binding on the parties unless it is appealed to the High Court.
Advantages of adjudication:
- choice of specialist adjudicator
- adjudicator has no jurisdiction to award costs (less risk in a difficult case)
- retains a business relationship or ongoing contract thereby reducing disruption
Disadvantages of adjudication:
- Adjudicator has no jurisdiction to award cost (limits recovery)
- no automatic right to interest
- only binding until appealed
- to enforce the decision you must issue fresh proceedings and apply for P24 Summary Judgment
- costs implication on enforcement.