The Different Types of Adjudication and When to Use Them

Types of adjudication in construction law primarily fall into two categories; statutory adjudication and contractual adjudication. While both offer mechanisms to resolve disputes quickly, they arise from different legal foundations and understanding the distinction is crucial for any contractor, developer, or professional navigating the complexities of a construction contract.

In this article, Construction Law Partner Phil Caton, explores the differences, practical implications, and strategic considerations of each approach, with expert insight into when and how adjudication is most effectively used.

What are the main types of construction adjudication in the UK?

The main types of adjudication are statutory adjudication or contractual adjudication.

In other words, a party either has a right to refer a dispute to adjudication because it has a right to do so under statute, or it has a right to do so under contract.

Quite often, a party may have both the statutory right to adjudicate a dispute as well as a contractual right.

What is statutory adjudication and when does it apply in construction disputes?

Statutory adjudication is the right under the Housing Grants, Construction and Regeneration Act 1996 to refer a dispute adjudication.

It applies in England and Wales where a party has a “Construction Contract” as defined under the HGCRA 1996. It also applies under a similar but separate scheme in Scotland.

What’s the difference between contractual adjudication and statutory adjudication in construction?

Statutory adjudication is a legal right fixed by law, with set rules and timescales that must be strictly adhered to. Contractual adjudication is whatever the contract says – it can vary in procedure and scope, but in practice it often mirrors the statutory framework for convenience and familiarity.

What types of construction disputes are suitable for adjudication?

The main aim of adjudication is to improve cash flow and therefore, it is frequently used for resolving financial disputes such as interim payment applications, delay and disruption claims and the assessment of final accounts.

That said, the Construction Act allows a party to refer any dispute or difference to adjudication so this could include defective works claims, extensions of time, matters of contractual interpretation, termination or professional negligence claims.

With adjudications being temporarily binding, how can this affect enforcement and final resolution in construction disputes?

Because adjudicator’s decisions are temporary binding, the Courts are strongly supportive of their enforcement, even in instances where the adjudicator may have made an error.

Successful parties in an adjudication can apply to the Court using an expedited process and the Court will usually uphold the adjudicator's decision, meaning the decision can be enforced much like a Court judgment.

The underlying dispute can still be finally resolved later through litigation or arbitration, but the parties will be expected to comply with the adjudicator’s decision in the first instance.

What are the key procedural differences in adjudication types under JCT and NEC contracts?

Not much. The most common forms of construction contract such as JCT and NEC tend to implement the statutory scheme.

That said, statutory adjudication does not usually apply to residential / homeowner contracts, so JCT homeowner contracts tend involve a contractual adjudication rather than a statutory one, although the process is quite similar.

What things influence the best way to handle a payment dispute?

the first step is always to check the payment provisions in the contract, consider whether they comply with the statutory requirements and importantly, whether they have been followed.

A contractor will usually make an application for payment, and the employer must respond with a payment notice stating the amount due.

If the employer has failed to issue a payment notice or a pay less notice in response to the application, the dispute may be a simple question of whether a notified sum is due, rather than a full valuation of the account.

How are adjudicators appointed in different types of construction adjudication?

The most common way of appointing an adjudicator is to apply to a nominating body such as RICS or RIBA.

The referring party will generally explain the nature of the dispute and the nominating body will then select an adjudicator based upon the information provided.

Another way might be for the contract to name an individual to act as adjudicator although in our experience, this is less common as it raises questions as to what happens if the named individual passes away or is unable to act.

Another way is for the parties to agree an individual to act once a dispute arises but again, this is less common in our experience and it is more common for the referring party to simply apply for an adjudicator from a nominating body.

What are the timeframes and enforceability rules across construction adjudication types?

Under statutory adjudication, the process begins with the Referring Party serving its Notice of Adjudication upon the Responding Party.

Once the Notice of Adjudication has been served, the Referring Party must then serve its Referral within 7 days of serving the notice.

Once the Referral has been served by the Referring Party, the adjudicator has 28 days to give their decision, although this period can be extended by 14 days if the Referring Party agrees.

The timescales under contractual adjudication can vary depending on the terms of the contract, but most will follow similar timescales to statutory adjudication.

The adjudicator will usually set out the timescales for complying with their decision.

If a party does not comply with the adjudicator's decision, an application can be made to Court to enforce the adjudicator’s decision.

How does construction adjudication compare to arbitration or litigation in resolving disputes?

Provide context for why adjudication is preferred e.g. impact on speed, cost, enforceability etc.

Adjudication is much quicker, with decisions usually issued within 28 days of the dispute being referred to the adjudicator.

By contrast, arbitration and litigation are slower, with final court proceedings often taking 12 months or more.

Adjudication focuses on cashflow and speed, while others focus on final determination.

What should contractors and developers include in their contracts to enable effective adjudication?

Most construction contracts fall under the statutory adjudication scheme.

However, where the works fall outside the Act, such as contracts with a residential occupier, works that are located abroad or non-construction operations, a clear and well drafted contractual adjudication clause should be included to ensure that adjudication is still available.

Are there emerging trends or risks in how adjudication is used in UK construction?

Yes. The latest report from the Adjudication Society shows adjudication continues to grow in use, with referrals at their highest level on record, up 9% on last year.

Most claims fall between £125,000 - £500,000 with only 4% reported below £25,000.

Inadequate contract administration and poor contract particulars remaining the leading causes of disputes and “smash and grab” claims dominate by claim type, at 63%.

With HM Courts & Tribunals Service data showing increasing time to trial, we expect to see more referrals to adjudication in 2026 as parties seek faster resolution.

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Whether you’re drafting construction contracts, managing a payment dispute, or considering your enforcement options, understanding the types of adjudication available can significantly influence your outcome.

We offer bespoke legal guidance rooted in deep sector knowledge and real-world experience. If you're facing a dispute or seeking to futureproof your contract strategy, our team is here to help.

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