Adjudication

Adjudication is an informal process whereby construction companies are able to resolve disputes. The process is usually much quicker and cheaper than formal arbitration or court proceedings with a decision usually delivered within 28 days unless the parties agree otherwise. This allows disputes to be resolved quickly and effectively to ensure that the contract works are able to remain on schedule and also for construction companies to ensure that they have sufficient cash flow to complete the works.

Bell Lax have acted successfully in a number of adjudications including:

• Successfully resisting adjudications where a sub-contractor alleged that the main contractor had not served a valid pay less notice;
• Successfully representing both main contractors and sub-contractors to recover payments where employers and main contractors have failed to serve appropriate pay less notices in time;
• Acting for a main contractor in a dispute with a subcontractor in relation to the defective installation of lifts at four separate sites. Bell Lax successfully brought adjudication proceedings against the subcontractor in respect of the first three sites recovering damages in excess of £350,000 with the subcontractor agreeing to voluntarily remedy the defects themselves at the fourth site;
• Successfully defending a main contractor in relation to an adjudication alleging over £1 million of defects to a hotel refurbishment. The adjudicator found that our client was not liable for any defective works;
• Defending a main contractor in two final account adjudications brought by a subcontractor alleging variations to the contract and damages in respect of delays to the works. Bell Lax successfully reduced the amount claimed from approximately £670,000 to approximately £245,000, which equated to roughly the contract sum;
• Acting for a subcontractor whose contract was terminated by a national housebuilding company. After commencement of adjudication proceedings, Bell Lax were able to negotiate the sub-contractor’s return to site and damages in respect of their lost profits;

Whilst in the majority of instances the losing party accepts the adjudicator’s decision, Bell Lax are also able to assist with enforcement of adjudication decisions in the High Court where there is a fast track process to ensure that these matters are heard swiftly and usually within 1-2 months.

Adjudication is a swift procedure with a defence typically required within 7 days of receipt of the Referral Notice. As such, it is vital that you contact us as soon as possible after receiving a notice of intention to refer a matter to adjudication to ensure that we are able to construct the best possible defence for you.

If you wish to commence an adjudication or have recently received notice of an adjudication being pursued against your company please contact Natalie Bradshaw, Associate Director on 0121 355 0011 or email Natalie Bradshaw@belllax.com