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Adjudication (Commercial) meaning

What does Adjudication (Commercial) mean?
adjudication is a fast‑track process in which an independent adjudicator gives a temporarily binding decision on a commercial contract dispute, most commonly in construction and infrastructure projects. Used descriptively in practice, construction adjudication is governed by statute while other sectors may adopt it by contract. It is designed to keep cash flowing (“pay now, argue later”) and typically concludes within 28 days from referral via a documents‑based procedure. In England and Wales and Scotland, statutory adjudication is under the Housing Grants, Construction and Regeneration Act 1996 (as amended) and the Scheme for Construction Contracts, giving any party to a construction contract the right to refer a dispute arising under that contract at any time. In Northern Ireland, a similar right arises under the Construction Contracts (Northern Ireland) Order 1997. In Ireland, the Construction Contracts Act 2013 provides adjudication for payment disputes only. Decisions are enforceable through the courts (e.g., the Technology and Construction Court, the Court of Session, and the High Courts), often by summary judgment, and remain binding unless and until finally determined by arbitration, litigation or agreement. Outside statute, parties may adopt contractual adjudication; its effect and enforcement depend on the agreed rules and general contract law.
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View the related News about Adjudication (Commercial)

NEWS
Construction law update: late payment reforms, anticipatory BLOs under BSA, Scottish prescription ruling, IMS negligence scope, guarantee limits, and NHQB 2025 impact report

In this issue: Payment Building safety Scots law Consultants on construction projects Guarantees Construction industry news Daily and weekly news alerts New and updated content Construction trackers Payment Late payments—Tackling poor payment practices—government response Tim Wright, Partner in technology, outsourcing and commercial at Fladgate LLP, reviews the government’s reply to the late payment consultation ‘Time to Pay Up’, issued on 24 March 2026, setting out the most far‑reaching measures to deal with overdue payments in more than a quarter of a century. Government figures suggest overdue invoices drain £11bn annually from the UK economy and push 38 firms out of business each day. The reform bundle would grant the Small Business Commissioner (SBC) stronger authority to probe, determine and penalise firms; impose a hard ceiling of 60 days on payment terms; mandate statutory interest at 8% over the Bank of England base rate; fix a legal cut‑off for challenging invoices; and float a prohibition...

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NEWS
Ireland’s CCPC introduces settlement procedure for administrative competition law investigations, enabling admissions-based fine reductions and faster outcomes

The Competition and Consumer Protection Commission (CCPC) has unveiled a fresh process for settling administrative competition law investigations and cases. From September 2023, the CCPC, acting via independent adjudication officers, may determine that a business has infringed competition law and levy financial penalties of up to 10% of the undertaking’s global annual turnover or €10m, whichever amount is higher. Under the new Settlement Procedure, the CCPC may accept the application of a lowered monetary penalty where a business acknowledges a breach of competition law and consents to a simplified process to bring the investigation to a close. The CCPC and the business may likewise agree any measures that the business will be...

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NEWS
English Commercial Court upholds one-stop settlement arbitration: Fiona Trust presumption defeats section 67 challenge; anti-suit injunction granted (Petroleum Exploration v Frontier Holdings)

Petroleum Exploration (PVT) Ltd v Frontier Holdings Ltd and another company [2026] EWHC 56 (Comm) What are the practical implications of this case? The judgment strengthens the Fiona Trust presumption in the specific setting of settlement agreements concluded to resolve earlier contractual disputes. In particular, where parties insert a fresh, broadly worded arbitration clause into a settlement agreement, the working assumption is that it is intended to operate as a single ‘one‑stop’ route for resolving all future disputes arising under the settlement, in the absence of unequivocally clear carve‑outs (see Fiona Trust Holding Corp v Privalov [2007] UKHL 40). When drafting or interpreting such arbitration clauses, parties and their legal representatives should: assume that the arbitration clause in the settlement agreement is the operative dispute resolution provision for any dispute between the parties concerning the implementation of, or alleged breach of, the settlement terms. ...

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View the related Practice Notes about Adjudication (Commercial)

PRACTICE NOTES
Cross-border ADR for UK dispute resolution practitioners: arbitration, mediation and enforcement (Singapore Convention), EU Mediation Directive post-Brexit, European Code of Conduct, and construction adjudication/dispute boards

This Practice Note explores various alternative dispute resolution (ADR) options used in cross-border disputes. What is ADR? ADR denotes a collection of methods for resolving disagreements other than through the trial process. It offers a confidential means of settlement outside a court of law, whereby a dispute or difference is referred to an impartial individual or panel, either for determination or to help the parties achieve a negotiated resolution of their dispute. The process may lead to a binding outcome if the agreement by which the parties submit the dispute to ADR so provides. Note that the Commercial Court Guide and the Circuit Commercial Court Guide use the term negotiated dispute resolution (NDR), which can broadly be classified as either facilitated processes or imposed decisions. The two principal forms of ADR are arbitration and mediation. For insight into the range of ADR types available, see Practice Note: What is ADR? Arbitration The most consistently utilised ADR method in cross-border disputes is arbitration. This is a private form of...

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PRACTICE NOTES
Scottish Property ADR: Negotiation, Mediation, Expert Determination, Arbitration, Adjudication and ENE; Clause Drafting, Enforceability and Interaction with Court Proceedings

When disagreements arise in property transactions, parties typically have a number of avenues for resolving matters, each bringing its own benefits and drawbacks. This Practice Note explores those routes and provides examples of the types of property dispute that may lend themselves to settlement through alternate dispute resolution (ADR). ADR in property disputes It is well recognised that ADR can be an effective method of resolving disputes, especially in property disputes and other commercial transactions. ADR is: efficient cost-effective capable of producing settlements that courts may not be able to replicate more imaginative than judicial awards tailored to the commercial needs of the parties At present, ADR is not compulsory in Scotland, so it is not a necessary pre-requisite to legal proceedings; however, practitioners still have obligations to advise on, and consider, ADR...

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PRACTICE NOTES
UK B2C boilerplate: CRA 2015 unfair terms and transparency, CMA guidance, DMCCA 2024 unfair trading, grey list and banned terms, and drafting best practice

This Practice Note outlines the law governing the use of boilerplate provisions in business-to-consumer (B2C) contracts. In addition to summarising the Consumer Rights Act 2015 (CRA 2015), which polices unfair terms in B2C agreements, it also considers the Competition and Markets Authority guidance ‘Unfair contract terms: CMA37’ (CMA Guidance). For analysis of particular boilerplate terms used in B2C arrangements—adjudication, alternative dispute resolution (ADR), arbitration, assignment, definitions and interpretation, entire agreement, force majeure, governing law, jurisdiction, variation and waiver—see Practice Note: Boilerplate clauses in business-to-consumer contracts—specific clauses. For wider material on standard terms and conditions in B2C contracts, see the following Practice Notes: Consumer standard terms and conditions—the business context Consumer standard terms and conditions—the advertising and marketing context Consumer standard terms and conditions—incorporation For our suite of template B2C contracts and drafting guidance, see: Trading with consumers—overview and Drafting consumer contracts—checklist. What is ‘boilerplate’? ‘Boilerplate’ describes those clauses included in an agreement to govern the mechanics of how it operates...

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PRECEDENTS
Schedule of Employer‑Favouring Amendments to JCT SBC/AQ 2016 (England): Building Safety Act/HRB, Dutyholder and CDM compliance; design liability; collateral warranties; insurance; payment; insolvency; adjudication (arbitration removed)

The Contract comprises the completed Standard Building Contract With Approximate Quantities 2016 published by the JCT subject to the following amendments: This Contract adopts JCT SBC/AQ 2016 with extensive modifications to reflect design responsibility, building safety and commercial controls. Recitals: Contractor to provide a master programme and Schedule of Information Requirements; confirms site due diligence and accepts full CDP design liability. Articles: Dutyholder Regulations added; Tender Price covers Principal Contractor duties; arbitration removed; Schedule of Amendments prevails; strict protection of Third Party Agreements. Definitions/governance: new and revised terms (Building Safety Regulator, HRB, Practical Completion, Copyright Material, Design Sub‑contractors, Dutyholder Regulations); several deletions; English court jurisdiction. Design/materials/information: skill‑and‑care design and coordination; only new, compliant, non‑deleterious materials; golden thread storage; monthly programme reporting; site risks at Contractor’s risk. Procedures/controls: tighter instruction, testing, defects and as‑built duties; enhanced confidentiality and IP licences; HRB assistance; CDM/Dutyholder competency confirmations. Sub‑contracting/rights: prescribed sub‑contracts, insurances and delivery of collateral warranties/third‑party rights; limits on assignment. Payment/commercial: 28‑day final...

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