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United Kingdom

Key definition

Adjudication definition

What does Adjudication mean? Adjudication is a fast-track dispute resolution process, most commonly used in construction projects, where an independent adjudicator issues a temporarily binding decision on issues such as payment, valuation, extensions of time and defects. It is designed to keep cash flowing—pay now, argue later—while preserving the parties’ rights to litigate or arbitrate later. In England and Wales and Scotland, a statutory right to adjudicate “at any time” arises under the Housing Grants, Construction and Regeneration Act 1996 (as amended), with default rules in the relevant Scheme for Construction Contracts. Northern Ireland has an equivalent regime under the Construction Contracts (Northern Ireland)...

Contractor adjudication to recover retention monies: case law

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Q&As

retention

Retention describes the portion of interim payments the employer withholds as security for the contractor’s future performance of its duties and to encourage the contractor to discharge those duties in full and properly. For further details, consult the Practice Note: Retention of payment in construction contracts. When retention is to be released to the contractor depends on the particular contract terms for the project. Typically, half of the retained sum is paid out at practical completion, with the balance thereafter following completion of any remedial works for defects reported within the defects liability period. Consequently, if these milestones are reached before the final certificate is issued, the contractor may have a right to seek payment of some or all of the retention...

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Web page updated on 27/05/2026

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