Adjudication is a contractual or statutory procedure for swift interim dispute resolution. It is provided by a third party adjudicator selected by the parties in dispute.
Adjudication decisions are binding unless and until they are revised by litigation or arbitration. If parties to a construction contract do not agree to an adjudication procedure, then one is imposed by statute.
This process can be popular as it offers a lot of advantages. It includes confidentiality, speed and cost proportionality. For many clients, the most important benefit is that it offers less disruption than other, lengthier procedures.
However, it has some drawbacks. It’s not legally conclusive, which means if the decision is not upheld by all parties, a final determination will be required from the courts or formal arbitration.