The history and development of statutory adjudication as a means of resolving UK construction disputes

Adjudication has been an option in selected standard construction contracts for some years. This contractual right first occurred in 1976 when amendments were incorporated into The Green Form of Nominated subcontract and the Blue Form of Domestic Sub Contract. These forms applied to contracts under the 1963 edition of the Joint Contract Tribunal (JCT).

Sir Michael Latham was commissioned on 8 July 1993 to write a report into how the Construction industry could work more effectively. One of his tasks was to consider “current procurement and contractual arrangements”. Latham titled his response ‘Constructing the Team’, publishing it in July 1994.

The implementation of statutory adjudication under Section 108 of the Housing Grants Construction and Regeneration Act 1996 (HGCR Act) was one of the fundamental recommendations of the Latham Report (1994). Latham envisaged a cost-effective alternative to expensive drawn-out litigation or arbitration in construction disputes.

The HGCR Act 1996 sets out a system structure for adjudication. All construction contracts must meet this minimum requirement. Should a construction contract fail to meet these minimum standards then the Statutory Instrument 1998 No 649 ‘The Scheme for Construction Contracts (England and Wales) Regulations 1998’ will apply and outline the detailed rules and procedures available.

The Local Democracy, Economic Development and Construction Act 2009 makes certain amendments to the 1996 Act. Most notably contracts entered into after the 2009 Act came into force no longer need to be evidenced in writing for the 1996 and 2009 Act to apply.

In the first major case on adjudication under the 1996 Act , Dyson J described the history and development of statutory Adjudication when he said;

“The intention of Parliament in the Act was plain. It was to introduce a speedy mechanism for settling disputes and construction contracts on a provisional basis, and requiring the decision of adjudicators to be enforced pending the final determination of disputes by arbitration, litigation or agreement”

Statutory Adjudication has become and remains one of the foremost means of dispute resolution in the UK construction industry.

As part of our Management Consultancy services Vinco London Consulting can help construction businesses and trade subcontractors understand the options and benefits of Construction Adjudication available to them. 

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