Adjudication

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Adjudication Meaning

Adjudication is a judicial process for settling disputes between the plaintiff and the defendant. An adjudicator is a government-authorized third party who presides over an adjudication.

Adjudication

At the end of the process, the adjudicator announces the final verdict—charting the rights and responsibilities of the disputing parties. A legal verdict is the last resort. The judicial process facilitates multiple attempts at reconciliation. However, once announced, the verdict is legally binding. Usually, non-violent breaches and financial disagreements are allocated to adjudicators.

Table of contents
  • Adjudication is a dispute redressal process. An adjudicator is a government-appointed third party. The arbitrator or the adjudicator is usually a judge or magistrate. The verdict is final and legally binding.
  • This process is less time-consuming when compared to other litigation procedures. According to the Construction Act, a fixed timescale of 28 days is allocated to settle a dispute.
  • The term adjudication is often confused with arbitration., but arbitration is a voluntary process. An arbitrator’s decision is not legally binding.

Adjudication Explained

Adjudication is an impartial process used for resolving disputes. Two parties approach an independent third party and present their issues before an adjudicator (usually a judge, jury, or arbitrator). After adjudication hearings, the adjudicator announces a conclusion or judgment.

The claimant serves notice of adjudication to the court. This document states the following information in the prescribed format:

  • Date of serving the notice.
  • Description of the dispute.
  • Details of the parties involved—including name and address.
  • Place, date, and time of the dispute.
  • Nature of remedy redressed.

Usually, such cases are settled within a short timeframe—to offer quick relief to the aggrieved parties (individuals, private entities, or public corporations). According to Great Britain's Construction Act, a fixed timescale of 28 days is allocated to settle a dispute. Compared to other litigation procedures, adjudication costs less. The adjudicator charges a small fee from the parties.  

Process

The various steps involved in the adjudication process are as follows.

  1. Commencement: This process begins when the claimant submits a written notice of adjudication. This document bears all relevant information about the dispute and involved parties.
  2. Adjudicator's Appointment: Once a notice is served, the government appoints an adjudicator within seven days. The adjudicator is either a judge or magistrate appointed by the Adjudicator Nominating Body (ANB).
  3. Notice of Acceptance: The adjudicator acknowledges their consent for presiding over a case by serving a notice of acceptance.
  4. Referral Notice: The claimant serves a referral notice—as soon as the adjudicator is appointed. This step must be completed within seven days of serving the notice. This referral notice contains details and claims made by the referring party. Also, a copy of the referral notice is sent to the responding party.
  5. Respondent's Response: When a responding party receives a referral notice, they can reply by sending a written response to the adjudicator. This step must be completed within seven days of receiving the referral notice. At the maximum, the step can take 14 days.
  6. Adjudicator's Decision: The adjudicator examines facts and evidence presented by the parties and announces a decision. This step can take a maximum of 28 days from the service of referral notice. However, with the consent of both parties, the adjudicator can extend the proceedings by an additional 14 days. After the additional duration, the decision is announced.

In Great Britain, this process is governed by the Housing Grants, Construction, and Regeneration Act of 1996 (Construction Act).

Types

The dispute resolution process is classified as follows:

  1. Immediately Enforceable: The involved parties adhere to the adjudicator's decision and make it immediately enforceable. This kind of verdict suits businesses that are at the initial stages. Small businesses do not have a considerable reserve fund. The defaulter pays a certain amount to the aggrieved party within the given time frame.
  2. Paper Only Adjudication: As the name suggests, this litigation process is carried out by submitting all the relevant documents, supporting evidence, expert reports, written adjudication claims, counterclaims, defenses, and legal submissions. Based on these papers (document), the adjudicator announces a verdict.
  3. Adjudication Proceedings with Hearings: It is one of the quickest adjudication processes. A time limit is set for submitting notices, responses, and cross-examinations.  
  4. Non-Binding: In such settlements, the arbitrator's decision is not legally binding. If the losing party is dissatisfied, they can appeal and avail of other litigation processes.

Adjudication vs Arbitration

The term adjudication is often confused with arbitration. Both terms refer to dispute settlement processes. However, the two processes have significant differences:

BasisAdjudicationArbitration
MeaningAdjudication is a litigation process where the government assigns an adjudicator.Arbitration is a voluntary and private dispute settlement process. One or more arbitrators intervene to give a binding decision.
Legal ProcessIt is a legitimate process.It is a private process involving third-party intervention.
NatureCompulsoryVoluntary
Required WhenIt is commenced as a last resort for dispute settlement.It is undertaken as a settlement when reconciliation attempts fail.
Decision-MakerThe adjudicator is a magistrate or judge.An arbitrator works for a private firm.
Regulated ByIn the UK, adjudication is governed by the Housing Grants, Construction, and Regeneration Act 1996 (Construction Act).The Federal Arbitration Act regulates the arbitration process in the US.
Dispute Settlement SpeedIt takes a bit longer, say a few months.It is comparatively faster.
ExpensesCompared to arbitration, this process is expensive. It is a cost-effective procedure.

Frequently Asked Questions (FAQs)

1. What is adjudication?

It is the court's judgment over a litigation process related to a non-violent breach or financial dispute between involved parties. The legally authorized third party states the rights and responsibilities of the parties—it is considered the final verdict.

2. What is the adjudication process?

The following basic steps are involved in any adjudication process:
1. The claimant serves the notice of adjudication.
2. An adjudicator is appointed.
3. The adjudicator serves the notice of acceptance.
4. The claimant makes an adjudication claim through a referral notice to the adjudicator.
5. The respondent presents a written response to the adjudicator.
6. The claimant submits a written reply against the respondent's response.
7. The adjudicator makes the final verdict or determination.

3. Is adjudication legally binding?

Yes, it is legally binding. It is the court's final decision or government-authorized third party—both parties are accountable for the verdict.

4. What is the role of an adjudicator?

The adjudicator is an unbiased third party who listens to the arguments, examines case details, and passes a legal judgment.