Successful Adjudication in Construction Dispute

Background

We represented a client operating in the construction sector in an adjudication arising from a payment dispute between two commercial parties. The disagreement concerned unpaid sums for work carried out under a construction-related contract. The client, having exhausted efforts to resolve the matter amicably, initiated adjudication proceedings in accordance with the relevant construction law framework.

Legal Context

Adjudication is a statutory dispute resolution mechanism available under the Housing Grants, Construction and Regeneration Act 1996, allowing parties to a construction contract to obtain a binding decision on payment disputes in a matter of weeks.

In this case, the dispute revolved around unpaid invoices for services rendered, with the responding party alleging that the sums claimed were either unjustified or subject to set-off. The referring party maintained that the amounts were contractually due and that the respondent had failed to honour its payment obligations without proper basis.

Our Legal Strategy

Given the accelerated nature of adjudication, our team worked quickly and precisely to present a compelling and well-evidenced case. Our approach included:

1. Preparing the Referral Notice

We compiled a detailed referral notice setting out the contractual framework, the agreed scope of works, and the precise sums claimed. We provided clear evidence of performance, delivery, and billing, ensuring that the Adjudicator had a full picture of the underlying commercial relationship.

2. Addressing Defences and Set-Off Claims

In anticipation of possible defences, we submitted rebuttals to the opposing party’s claims of defective work or entitlement to withhold payments. We argued that no proper notices had been served and that any set-off claims lacked sufficient evidentiary and contractual basis.

3. Costs Submissions

We also submitted legal argumentation concerning the allocation of adjudication costs, asserting that the conduct of the responding party warranted them being solely responsible for the Adjudicator’s fees.

Outcome

The Adjudicator found entirely in favour of our client, ordering the respondent to pay:

• £31,827.77 in principal debt;
• VAT on the above sum;
• Interest at 5% on the outstanding amount;
• The full cost of the Adjudicator’s fees, which were assessed at £16,875 plus VAT.

This outcome not only delivered a prompt and substantial financial recovery for our client, but also ensured that they were not burdened with the significant cost of the adjudication process.

Conclusion

This case highlights the effectiveness of adjudication as a dispute resolution tool in the construction industry — particularly where payments are withheld without justification. It also illustrates the value of clear documentation, contractual awareness, and fast, strategic legal action.

Our team ensured that the client’s position was clearly articulated and fully supported by evidence, leading to a favourable and cost-efficient resolution.

If your business is facing a construction payment dispute or is considering adjudication, we are here to provide clear, responsive, and effective legal support.

Contact us today to discuss your case in confidence.