In construction projects, disputes can arise at any stage due to payment issues, variations, delays, or quality disagreements. To resolve these disputes quickly and avoid disrupting ongoing works, many contracts such as FIDIC, NEC, and other standard forms provide a mechanism called adjudication. The process begins with a key step known as the Notice of Adjudication, which formally triggers the dispute resolution procedure.
The Notice of Adjudication is a written document issued by one party (the referring party) to the other party, clearly stating that a dispute has arisen and is being referred to adjudication. This notice marks the official starting point of the adjudication process. It typically includes details such as the nature of the dispute, the issues in contention, the contractual basis of the claim, and the remedy or relief sought. The purpose of this notice is to ensure that both parties are fully aware that a formal dispute resolution process has begun.
Once the Notice of Adjudication is issued, the next step is the appointment of an adjudicator. Depending on the contract, the adjudicator may be jointly agreed upon by the parties or appointed by a nominating body specified in the contract. The adjudicator must be independent and impartial, with suitable technical and contractual expertise relevant to the construction dispute.
After the adjudicator is appointed, the referring party submits a detailed Referral Notice or claim submission. This document expands on the initial notice and includes all supporting evidence such as contracts, correspondence, site records, drawings, payment certificates, and delay analysis if applicable. The responding party is then given an opportunity to submit its response and supporting documents within a defined timeframe.
The adjudicator reviews the submissions from both parties, may request additional information, and can conduct site visits or meetings if necessary. The process is intentionally fast-paced, typically lasting around 28 to 42 days, depending on the contract provisions. This ensures that disputes do not delay construction progress for extended periods.
Finally, the adjudicator issues a written decision, which is usually binding on an interim basis. This means that both parties must comply with the decision immediately, even if one party disagrees and intends to challenge it later through arbitration or litigation. The objective is to maintain cash flow and allow the project to continue without interruption.
In conclusion, the pathway of a Notice of Adjudication is a structured and time-bound process that begins with formal notification of a dispute and progresses through adjudicator appointment, evidence submission, review, and finally a binding decision. This mechanism plays a crucial role in modern construction contracts by ensuring disputes are resolved quickly, efficiently, and without halting project execution.
