On-site aggravations arise from late payments, drawn-out changes, or accumulation of defects. You have a contract dispute on your hands, so now what? Thankfully, UK construction law offers more solutions than protracted disputes in court. Be it swift adjudication or compassionate mediation, these methods help smooth the flow of work while also protecting relationships.
Common Triggers on Site
Delays, payment disputes, scope creep, and design errors sound familiar. You might be a subcontractor trying to recover a payment that’s being held back, or a contractor facing unexpected defects on the job. That does sound overwhelming, but there are solutions, and if you need early advice, talking to experienced commercial dispute solicitors can help you choose the right tool before things escalate.
Why Adjudication Works Fast
One main concern is that adjudication functions like having a referee jump into the game at any point. It is performed using a ‘set adjudicating’ approach, and full decisions are made in not more than 28 days. The Construction Act applies to almost all projects in the UK. Cost?
Reasonable, a few thousand pounds. Pros? Makes the process faster and is enforceable. Cons? Adjudication only provides partial settlement, and can’t fully compensate if greater damages were incurred.
When Mediation Saves Time
You know what? Mediation is best when relationships are important, and often, they are. A neutral mediator guides the conversation and helps both sides communicate better
It is casual, can be quick, and often completed in a day or two. It is usually cheaper than litigation. And get this, corporate mediation settles around 92% of the cases, with over 70% resolved on the same day.
Arbitration: A Private Courtroom
Consider arbitration as a hidden courtroom. It is a binding, private, confidential “court” suitable for intricate or global agreements. You choose the experts who make up the panel. While timelines vary, be prepared for a range of several months to a year.
The costs? Somewhat more expensive, in the five or six-figure range. On the plus side, it is confidential and enforceable outside the country. However, it can be more formal than mediation and slower than adjudication.
Litigation in TCC/High Court
If other methods don’t work, you initiate proceedings in the Technology & Construction Court (TCC) or High Court. These courts are formal and well-structured with great enforcement powers, but also come with a drawback, they take a long time and are costly.
In 2024, there were only 3,380 commercial cases filed in England’s High Court, marking a 10% drop from the previous year and the lowest number recorded since 2018. A developing desire to prioritise mediation or arbitration is what is contributing to these declines.
On‑Site Dispute Boards
Some projects manage disputes through the use of a Dispute Board, which consists of panels formed at the start of the project that deal with issues as they arise. You might think of them as permanent referees. They have full familiarity with your project and disputes, when they arise, are often resolved within weeks.
Their expense is part of the project’s budget and can be very reasonable, which makes them ideal for long-term builds. However, for short or small projects, setting up a board can be akin to trying to drill a sewer tunnel using a teaspoon.
Real‑World Scenario
Suppose you are a subcontractor and the client is withholding final payment over claimed snagging. You try to ease conflicts by relaxing over coffee while informally presenting your case. If everything goes wrong, then there are methods of swift payment of 80% or the full amount. Clients who refuse adaptation stubbornly can make use of TCC. And for projects that have large or global bearings, they could use on-site boards to resolve snagging disputes quickly.
Choosing What Works for You
It resembles the process of selecting methods, and many approaches stem from the same document. Short discussion needed? Go for adjudication. Want a talk? Mediation. Weighty case? It’s arbitration. Is full armor needed? Litigation. Large-scale project? An early-stage board is beneficial. Most cases are likely to benefit from several strategies simultaneously, so it’s best to approach conflicts with mediation, then use adjudication, and only after all other avenues have been exhausted, litigate.
Final Thoughts
Having different methods for resolving a given issue makes the entire process easier to handle as well as cheaper. The drop in commercial filings suggests that people are getting smarter and trying less formal paths first.
What works for you? Fast and affordable options like mediation and adjudication are favored by many SME firms. These approaches apply when there are more serious disputes to resolve.
