Construction ADR UK: Adjudication, Mediation & More

Overview

Alternative Dispute Resolution refers to any method of settling a dispute outside traditional court litigation. In the construction context, ADR has become the default expectation rather than the exception, partly because of the sector's heavy reliance on standard form contracts (such as JCT and NEC) that build ADR procedures directly into their dispute clauses, and partly because the Housing Grants, Construction and Regeneration Act 1996 gives most parties a statutory right to adjudicate.

The four most common routes are adjudication, mediation, arbitration, and expert determination. Each has its own character. Adjudication is fast and imposed by statute for qualifying contracts. Mediation is consensual and aims for a negotiated settlement. Arbitration resembles a private trial with a binding award.

Expert determination hands a technical question to a specialist whose decision the parties agree to accept. Choosing between them depends on the nature of the dispute, the value at stake, the relationship between the parties, and whether speed, confidentiality, or finality matters most.

Key steps

1. Identify the nature of the dispute. Before reaching for any ADR process, pin down what is actually in issue. A payment dispute behaves very differently from a technical defect or a delay claim. Knowing whether the disagreement is contractual, technical, or factual helps you match the dispute to the right resolution method and avoid wasted time on a forum that cannot give you what you need.
2. Review the contract's dispute resolution clause. Most construction contracts set out a specific procedure, sometimes a tiered approach requiring negotiation or mediation before adjudication or arbitration. Read the clause carefully, including any notice requirements, time limits, and named institutions. Skipping a contractual step can undermine your position later, so treat the clause as your starting map rather than an afterthought.
3. Consider statutory adjudication rights. If your contract falls within the scope of the Construction Act, either party has the right to refer a dispute to adjudication at any time. This is often the quickest way to unlock a payment dispute because the adjudicator must usually decide within 28 days of referral, and the decision is enforceable on an interim basis even if later challenged.
4. Weigh speed, cost, confidentiality and finality. Each ADR route balances these factors differently. Adjudication is rapid but temporarily binding. Mediation is cheap and private but requires willingness to settle. Arbitration produces a final, enforceable award but can be as costly as litigation. Expert determination is focused and efficient but limited to defined technical questions. Choose the route that fits your priorities.
5. Prepare your evidence and submissions carefully. Whichever route you take, the strength of your case depends on clear documentation: contract terms, correspondence, programme records, payment applications, photographs, and expert input where relevant. ADR timetables are often compressed, particularly in adjudication, so start gathering evidence early and present your arguments in a structured, easy-to-follow way.