Commercial & Contract · Best Practice · Construction

Adjudication Notice

A formal notice of intention to refer a dispute to adjudication under the Construction Act 1996.

Last reviewed: 29 March 2026 — This guide reflects UK law as of this date. Construction Act 1996 remains current with no amendments enacted as of 29 March 2026. Next scheduled review: 29 March 2027.

Legal basis	Housing Grants, Construction and Regeneration Act 1996 (Construction Act) s.108 — as amended by the Local Democracy, Economic Development and Construction Act 2009
Statutory right	A party to a construction contract has the right to refer a dispute arising under the contract for adjudication at any time
Timeline	Notice of Adjudication served → adjudicator appointed within 5 days → Referral Notice within 7 days of appointment → Response typically 14 days → Decision within 28 days of Referral (extendable by 14 days with referring party's consent)
Enforcement	An adjudicator's decision is binding until the dispute is finally determined by arbitration, litigation, or agreement — enforceable by summary judgment in the Technology and Construction Court (TCC)
Abbey Healthcare	The Supreme Court in Abbey Healthcare confirmed that most collateral warranties are not construction contracts, meaning there is no statutory right to adjudicate disputes arising under collateral warranties

1. Adjudication

Adjudication is the construction industry's rapid dispute resolution mechanism. Introduced by the Housing Grants, Construction and Regeneration Act 1996 (the Construction Act), it gives any party to a construction contract the statutory right to refer a dispute arising under the contract to an independent adjudicator at any time. The process is designed to produce a binding decision within a compressed timescale — typically 28 days from the Referral Notice — so that disputes can be resolved quickly without disrupting the progress of the works.

Adjudication is commonly used for disputes relating to payment (including interim and final account disputes), valuation of variations, extensions of time, loss & expense claims, defects, and the interpretation of contract terms. The adjudicator's decision is temporarily binding — it must be complied with immediately and can be enforced by summary judgment in the Technology and Construction Court (TCC). The decision remains binding until the dispute is finally determined by arbitration, litigation, or agreement between the parties. In practice, the vast majority of adjudicator's decisions are never challenged and become the final resolution of the dispute.

The process begins with the referring party serving a Notice of Adjudication on the responding party. The adjudicator must be appointed within 5 days of the Notice. Within 7 days of the adjudicator's appointment, the referring party must serve a Referral Notice setting out its case in full, accompanied by all supporting evidence and documents. The responding party then has a period (typically 14 days, though this is at the adjudicator's discretion) to serve its Response. The adjudicator must reach a decision within 28 days of the Referral Notice, though this period can be extended by up to 14 days with the consent of the referring party, or by any period with the agreement of both parties.

The adjudicator's jurisdiction is limited to the Notice

The adjudicator can only decide the dispute as defined in the Notice of Adjudication. If the Notice does not include a particular head of claim or type of redress, the adjudicator has no jurisdiction to deal with it. This makes the drafting of the Notice critically important — any claim or remedy not included in the Notice cannot be pursued in the adjudication, even if it is raised in the Referral Notice. The adjudicator must stay within the scope of the Notice, and a decision that goes beyond the Notice may be unenforceable on jurisdictional grounds.

2. Content

A Notice of Adjudication must contain the following information to ensure that the adjudicator has jurisdiction and that the responding party understands the nature and scope of the dispute being referred.

Element	Explanation
Notice heading	The document must be clearly headed “Notice of Adjudication” and must state that it is served pursuant to section 108 of the Housing Grants, Construction and Regeneration Act 1996 (or the relevant contractual adjudication provisions).
Parties	The full legal names and registered addresses of the referring party and the responding party. The parties must be correctly identified as the contracting parties under the construction contract.
Contract	Identification of the construction contract under which the dispute has arisen — including the contract date, the parties to the contract, a brief description of the works, and any relevant amendments or variations to the contract.
Nature of dispute	A clear and concise description of the dispute being referred to adjudication. This defines the adjudicator's jurisdiction — the adjudicator can only decide the dispute as described in the Notice. Common disputes include payment, valuation, variations, extensions of time, loss & expense, defects, and termination.
Redress sought	The specific remedy or relief that the referring party is seeking from the adjudicator. This may include a declaration, a direction to pay a specified sum, an extension of time, or a direction that certain works are defective. All heads of redress must be included — any remedy not sought in the Notice cannot be awarded by the adjudicator.
Nominating body	The adjudicator nominating body (ANB) to which the referring party intends to apply for the appointment of an adjudicator, if the contract does not name a specific adjudicator. Common ANBs include the RICS, RIBA, ICE, CIArb, and the TeCSA.
Service	Details of how the Notice has been served on the responding party, including the method of service (post, email, hand delivery) and the date and time of service. Proper service is essential — a Notice that is not properly served may be challenged on jurisdictional grounds.
Signed by	The Notice must be signed by or on behalf of the referring party. If signed by a representative, they must have authority to act on behalf of the referring party. The signatory's name, position, and the date of signing should be clearly stated.

3. Common Mistakes

Not including all redress sought in the Notice

The Notice of Adjudication defines the adjudicator's jurisdiction. If a particular head of claim or type of redress is not included in the Notice, the adjudicator has no power to deal with it. A common mistake is to describe the dispute in broad terms but fail to specify all of the remedies being sought. For example, a Notice that refers a payment dispute but does not seek interest on the sum claimed means the adjudicator cannot award interest, even if it is claimed in the Referral Notice. Every head of redress — whether a monetary sum, a declaration, an extension of time, or a direction — must be expressly stated in the Notice. Omitting a head of redress may require a second adjudication to deal with the matter that was left out.

Starting adjudication without sufficient evidence in the Referral

The Referral Notice must set out the referring party's case in full and be accompanied by all supporting evidence and documents. The referring party has only 7 days after the adjudicator's appointment to serve the Referral, and the adjudicator's decision must be reached within 28 days of the Referral. This is an extremely compressed timescale. A common mistake is to serve the Notice of Adjudication before the case and evidence have been fully prepared, leaving insufficient time to produce a properly evidenced Referral. The Referral is the referring party's main opportunity to present its case — an incomplete or poorly evidenced Referral significantly reduces the prospects of a favourable decision. All evidence, witness statements, calculations, and supporting documents should be substantially prepared before the Notice is served.

Using adjudication for the wrong dispute type

Adjudication under the Construction Act is only available for disputes arising under a construction contract as defined by the Act. Not all contracts in the construction industry are construction contracts for the purposes of the Act. The Supreme Court decision in Abbey Healthcare confirmed that most collateral warranties are not construction contracts, meaning there is no statutory right to adjudicate disputes arising under them. Similarly, professional services contracts (such as appointments of architects, engineers, and project managers) may fall outside the Act if the services do not constitute construction operations. Contracts with residential occupiers are also excluded. Before commencing adjudication, it is essential to confirm that the contract in question is a construction contract within the meaning of the Act and that the dispute is one that falls within the adjudicator's jurisdiction.

4. Frequently Asked Questions

Can an adjudicator's decision be challenged?▾

An adjudicator's decision is temporarily binding and must be complied with immediately, even if the losing party disagrees with it. The decision can only be challenged in limited circumstances. The main ground for challenge is that the adjudicator acted outside their jurisdiction — for example, by deciding a dispute that was not referred to them in the Notice of Adjudication, or by deciding a dispute under a contract that is not a construction contract within the meaning of the Act. A decision may also be challenged on the ground of serious breach of natural justice — for example, if the adjudicator failed to consider a party's submissions or was biased. However, errors of fact or law by the adjudicator are not grounds for refusing to comply with the decision. The losing party must comply with the decision and then pursue the dispute afresh in arbitration or litigation if it wishes to have the decision overturned.

What is smash and grab adjudication?▾

A smash and grab adjudication is a type of payment adjudication where the referring party (usually the contractor or subcontractor) claims entitlement to the full amount stated in an interim application for payment on the basis that the paying party failed to serve a valid pay less notice (or payment notice) within the time required by the contract. Under the Construction Act, if the paying party does not serve a compliant payment notice or pay less notice by the contractual deadline, the amount stated in the payee's application becomes the notified sum and must be paid in full by the final date for payment. A smash and grab adjudication enforces this statutory mechanism. The adjudicator does not assess the true value of the work — the only question is whether the paying party served a valid notice on time. If it did not, the referring party is entitled to the full sum applied for, regardless of whether the work was actually worth that amount. The paying party can then commence a separate “true value” adjudication to recover any overpayment.

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