Adjudication: Enforcing Your Rights Under the Construction Act

30 April 2026 · 5 min read · Dispute Resolution

Adjudication is the UK construction industry's default dispute resolution mechanism — fast, relatively inexpensive, and available as of right under the Construction Act. Over £2.3 billion in disputes are resolved through adjudication each year, and approximately 90% of adjudicators' decisions are complied with without the need for court enforcement. For contractors and employers alike, understanding how adjudication works is essential to protecting commercial position.

The Right to Adjudicate

The Housing Grants, Construction and Regeneration Act 1996 (the Construction Act), as amended in 2009, gives any party to a "construction contract" the right to refer a dispute to adjudication "at any time." The key features:

• Statutory right — the right cannot be contracted out of. Even if the contract is silent on adjudication, the Scheme for Construction Contracts applies.
• Any time — adjudication can be invoked at any point during the contract, after completion, or even after termination.
• 28-day timetable — from the date of referral, the adjudicator must reach a decision within 28 days (unless the referring party agrees to an extension).
• Temporarily binding — the decision is binding until the dispute is finally resolved by litigation, arbitration, or agreement. In practice, most decisions become final because the parties accept them.
• Enforcement — if the losing party doesn't pay, the winner can apply to the Technology and Construction Court (TCC) for summary enforcement, typically within 4–8 weeks.

"Smash and Grab" vs True Value

Two types of payment dispute dominate construction adjudication:

• "Smash and grab" (undervalued payment) — the contractor has issued a payment notice or pay less notice, the employer has failed to serve a valid pay less notice within the required timeframe, and the contractor claims the full notified amount. Under the Construction Act, the failure to serve a pay less notice means the notified amount becomes due, regardless of the true value of the work. The TCC confirmed this in Glass v Encilia (2020): if no valid pay less notice is served, the contractor is entitled to the money — end of story.
• "True value" adjudication — the employer (or paying party) refers a separate dispute about the true value of the work, seeking a valuation that is lower than the amount already paid under a smash and grab decision. The TCC confirmed in S&T v Groves (2018) that the true value dispute is a separate "dispute" and can be adjudicated — but only after the smash and grab amount has been paid.

The lesson is simple but frequently ignored: serve your pay less notices on time, every time. The consequence of missing a pay less notice is not a reduction in the amount you eventually pay — it's an immediate liability for the full notified sum, followed by the cost and time of a true value adjudication to recover the overpayment. The Construction Act's payment provisions are designed to enforce cash flow discipline, not to reward inattention.

The Adjudication Process

1. Notice of Adjudication — the referring party serves a brief notice identifying the dispute and the remedy sought. This crystallises the dispute.
2. Selection of adjudicator — by agreement, by a nominating body (RICS, RIBA, ICE), or under the contract's adjudication provisions.
3. Referral document — within 7 days of the notice, the referring party serves the referral: the full claim with evidence, expert reports, and legal/professional submissions.
4. Response — the responding party serves its response, typically within 7–14 days (adjudicator sets the timetable).
5. Optional reply and rejoinder — the adjudicator may permit further submissions but will control the timetable strictly.
6. Decision — within 28 days of referral (or agreed extension). The adjudicator's decision must address the issues referred and provide reasons (brief but sufficient).

What Can Be Adjudicated?

Any dispute "arising under" or "in connection with" a construction contract, including:

• Payment disputes (interim valuations, final accounts, set-offs)
• Extension of time and loss and expense claims
• Defects and quality disputes
• Termination disputes
• Professional negligence (where the appointment is a construction contract)
• Interpretation of contract clauses

Practical Steps

1. Diary your notice deadlines — payment notices, pay less notices, and EOT notices. Missing these deadlines is the single most common and costly error in construction contract administration. A missed pay less notice is an immediate financial liability.
2. Keep contemporaneous records — adjudication is fast. You will not have time to search for evidence during the 28 days. Site diaries, correspondence, programme updates, and payment records must be maintained throughout.
3. Don't wait if you're owed money — adjudication is designed to be used, not threatened. If the dispute is clear and the evidence is strong, refer it. Delays weaken your position and allow the other party to prepare a defence.
4. Prepare your case before referring — the 28-day timetable means the responding party has very little time. If you've prepared your referral fully before serving the notice, you gain a significant procedural advantage.
5. Engage a specialist — construction adjudication is a specialised field. A QS experienced in adjudication, or a construction solicitor, can make the difference between winning and losing. The cost of professional support is typically a fraction of the amount in dispute.
6. Comply with the decision, then argue — if you lose, pay the award. You can then commence true value adjudication or litigation. Refusing to pay triggers enforcement proceedings, which are fast, expensive to defend, and almost always succeed.

Sources: Housing Grants, Construction and Regeneration Act 1996 (as amended by the Local Democracy, Economic Development and Construction Act 2009); Scheme for Construction Contracts (England) Regulations; Glass v Encilia [2020] EWHC 2699; S&T (UK) v Groves [2018] EWHC 124; Technology and Construction Court adjudication enforcement guidance; RICS adjudication guidance (2024); NorthEight dispute experience. This article is for general guidance only and does not constitute legal advice.