Adjudication & Arbitration
Which method of dispute resolution is right for you?
Many construction contracts will specify the method of dispute resolution that the parties are to undertake to rectify the dispute between them.
In the UK, statutory adjudication is a mandatory right in disputes arising under 'construction contracts', as defined in section 104 of the Housing Grants, Construction and Regeneration Act of 1996 (Construction Act). Less commonly, parties may also agree to refer disputes to adjudication through contractual agreement.
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Adjudication is a very quick process in comparison to other more formal methods. The adjudicator who is an appointed third party, has 28 days to decide the dispute once it has been referred to him. This period can be extended to 42 days by the referring party, or longer by the agreement of both parties. With limited rights to challenge the decision even if it is wrong, adjudication is often termed "quick and dirty" justice.
Arbitration will provide for a final resolution of a dispute. It is a private process with the aim of keeping costs and time down. Both parties to the contract must agree to the use of Arbitration, a request is made and an Arbitrator is appointed; this can be a single arbitrator or a panel. Thereafter a preliminary meeting takes place, before the final hearing and the award being made. The decision is final and award legally binding.
Our team can guide you through these processes and help you to decide on the best method of resolving your dispute.
Legal Disputes Enquiry
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Dispute Resolution Team
Holly is a Member and Head of Mullis and Peake’s Dispute Resolution Department
Martyn is our Chairman and the firms' Compliance Officer for Legal Practice