Jurisdiction(s):
United Kingdom

Construction Adjudication and Insolvency: Enforcement Stays, Set-off and Liquidation in England and Wales, with Comparative Insights from Singapore and Hong Kong

Published on: 05 March 2025

Published by a LexisNexis Construction expert

Legal News

Article summary

Originally published on the BCLP Website.

England and Wales Adjudication

Adjudication in England and Wales was brought in by the Housing Grants Construction and Regeneration Act 1996. It has been widely praised and hailed as a major success for giving parties to construction contracts a quick, efficient and cost-effective form of resolving disputes. The intention of the legislation (alongside minimum standards for interim payment arrangements in construction contracts) was to sustain cash flow across the sector and thereby stop contractors and, in particular, subcontractors from being deprived of funds in the industry. Nevertheless, the interaction between the statutory frameworks of adjudication and insolvency has, since adjudication’s inception over 25 years ago, produced a considerable body of case law. A party to a construction contract may refer any dispute in respect of that contract to adjudication at any time. The result is a decision that is binding on an interim basis and open to summary enforcement. If a party is unhappy with the decision, the dispute can be finally resolved through either litigation or arbitration, though in the vast majority of instances the parties accept the outcome and move on...

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