Adjudication

Adjudication

A series of Articles on Adjudication-Part 1

Adjudication is the legal process in which an arbiter or judge examines evidence and arguments, including legal reasoning presented by opposing parties or litigants, to reach a decision that determines the rights and obligations of the involved parties.

Three types of disputes are resolved through adjudication: disputes between private parties, such as individuals or corporations; disputes between private parties and public officials; and disputes between public officials or public bodies.

Although adjudication may have originated in the early 1970s, 1998 marked a significant milestone for both the law and the construction industry. It saw the introduction of the Technology and Construction Court (TCC) and the implementation of the adjudication process.

Adjudication became an integral part of the legal landscape in England on May 1, 1998, when the Construction Act came into effect. In the construction industry, adjudication is a tailored and unavoidable decision-making process designed to provide a fast and efficient, albeit provisional, resolution to contractual disputes. Adjudication decisions can be promptly enforced through courts.

The essential nature of adjudication was succinctly summarized by Mr. Justice Dyson (formerly known as Justice Dyson) in the landmark case of Macob Civil Engineering Ltd v Morrison Construction Ltd. Its purpose is to introduce a speedy mechanism for settling disputes in construction contracts on a provisional and interim basis, with the requirement that adjudicators' decisions be enforced until the dispute is finally resolved through arbitration, litigation, or mutual agreement. Parliament has clarified that adjudicators' decisions are binding and must be complied with.

One of the most appealing aspects of adjudication is that it allows the parties to express their grievances at a minimal cost. Under the Housing Grants, Construction and Regeneration Act (1996) (HGCRA 1996), a party to a construction contract has the right, as per Section 108, to refer a dispute to adjudication at any time.

Until recently, it appeared that the only grounds for challenging an adjudicator's decision were based on the jurisdictional authority of the award. However, it now seems there is another valid basis for contesting a decision. In essence, a decision will not be enforced if it can be demonstrated that the adjudicator failed to comply with the principles of natural justice.

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