Those in the business of construction are well aware of the frequency of disputes. Be it payment delays, variations in scope, or timeline disagreements, unresolved issues can quickly escalate. Fortunately, adjudication proceedings offer a practical solution.

In fact, it is increasingly recognised as the de facto method of dispute resolution in this sector. Statutory adjudication is a procedure available under the Housing Grants, Construction and Regeneration Act 1996 and makes use of expert construction adjudicators to determine disputes so it is not delayed by lengthy disagreements or unnecessarily expensive litigation.

According to the latest report from King’s College London, the volume of referrals to adjudicators made in 2024 was at a record high since 1998, and for good reason:

Speed: Nearly half of adjudications are completed within 42 days, with some resolved in as little as 28 days.

Cost efficiency: Adjudication is generally less expensive than other dispute resolution methods, particularly so given the recent rise in low-value adjudications.

Compliance: 77% of reported judgments are fully enforced by the Courts, which gives the adjudicator’s decision a degree of binding authority.

Cash flow protections: Statutory adjudications enable fast access to disputed funds, on a ‘pay now, argue later’ principle, ensuring that work can continue without escalating financial disruption for contractors.

The process is designed to be quick, confidential, and practical, and as a result the UK is currently experiencing the highest recorded number of referrals to adjudicators since statutory adjudication began. Of the 2,264 adjudication referrals made in 2024, 63% involved ‘smash-and-grab’ claims, where procedural defaults lead to payment entitlements. This further highlights the importance of complying with statutory notice requirements and the role that adjudication plays in maintaining cash flow within the construction industry.

For those navigating construction disputes, the dispute resolution team at Berry Smith offers expert legal support. Strategic, practical advice, tailored to your contract and project needs can be found by contacting the team at disputeresolution@berrysmith.com or 02920 345 511.