What is Adjudication in Construction Industry

Table of Content 

1. What is Adjudication
2. Cost of Adjudication
3. Duration of the Adjudication process
4. Advantages of Adjudication
5. Disadvantages of adjudication

Adjudication is one of the Alternative dispute resolution method which is mostly using in construction industry. Adjudication is practicing before going for Arbitration and Litigation. Adjudication procedure is handled by a third party adjudicator and adjudicator may consist with one or three members.
Adjudication procedure is well known for its strict time frame to provide decision. Therefore as a result, many fast track construction projects prefer to adapt for Adjudication instead or before go for other alternative dispute resolution procedures.

Final result of the Adjudication is purely based on the facts and documents submitted by the parties  and their assistance to proceed with the adjudication. Although adjudicator may adopt a inquisitorial role to collect facts and law.
 Decision given by Adjudicator is binding and enforceable until it may revised by Arbitration or Litigation. Therefore, there is no opportunity for parties to challenge the decision and appeal to change the decision.
Legal cost related to adjudication is mentioned in the adjudication contract. If not related legal fee is sole discretion of the Adjudicator. Also , cost of adjudication is shall be bared by both Contractor and Employer as per the provision in the Contract agreement.
Duration of the adjudication is fixed and adjudicator shall provide his decision within the time specified in the adjudication Contract.

Advantages of Adjudication

• Adjudication decision is given within a specified period of time. Therefore, projects can be run without delay.
• It is private hearing process and therefore it is ideal for commercial cases not to disclose private facts.
• Adjudicator is expert in both construction industry as well as related law, therefore decision made by Adjudicator is more favorable for all the parties.
• Less expensive process when compared to other alternative dispute resolution procedures like Arbitration. 

Disadvantages of Adjudication

•  Adjudicator has limited power. Therefore, adjudicator has to depend upon the facts given by parties rather than calling for required evidences and facts from the parties.
• Decision given by the adjudicator may not legally enforceable in many jurisdictions ( countries). Therefore Adjudication award has to be legally enforceable by the court.