Adjudication has become a defining feature of the construction industry. Originally introduced as a rapid dispute‑resolution mechanism, it is now one of the most commonly used processes for resolving disagreements between employers, contractors and subcontractors. In our experience, the disputes that reach adjudication tend to follow familiar patterns, often arising from poor contract administration, payment issues, and increasingly adversarial relationships between the parties.

If you have any queries regarding adjudication, please contact our adjudication experts through our services page here.

Contract Administration

Construction contracts often have strict procedural requirements. Notices must be issued on time, records maintained and variations documented. Yet in practice, these contractual requirements are often overlooked.

What makes contract administration critical is that disputes often turn on the technicalities, such as meeting contractual timelines, producing compliant notices and fulfilling obligations.

Even where the underlying issue is straightforward, failure to follow the contract’s processes can determine the outcome. A contractor may on the merits be entitled to payment or an extension of time, but if it has failed to comply with the contract, that entitlement can fall away.

Payment

Cash flow is imperative for contractors, and when it is disrupted, the appetite for adjudication will often grow.

Contractors should ensure that their payment claims are properly evidenced and presented in a way that is clear and easy for the paying party to understand. Equally, paying parties must be aware of their obligation to respond to payment claims, as a failure to issue a valid payment notice or pay‑less notice can result in the claimed amount becoming due by default. However, following the recent decision in Tenderbids v Electrical Waste Management [2025], a paying party in Ireland may, in certain circumstances, benefit from choosing not to respond at all.

That said, a paying party should be aware that choosing not to issue a response to a payment claim notice or issuing one that is vague or lacking detail to support the assessment, often prompts the contractor/subcontractor to commence adjudication in order to secure the sums they believe are due.

Relationships

Disputes often arise because the industry can be adversarial. There’s growing recognition that a more collaborative approach works better, reflected in the rise of contracts like the NEC. Aside from what the contract requires, parties can benefit from keeping communication open and working together to mitigate issues throughout the project.

Moving Forward

Adjudication will continue to play a key role in the construction industry. However, it is not always necessary, and that should be recognised.

Contractors and employers should:

  • Understand and comply with their contractual obligations;
  • Put clear processes in place to manage payment procedures; and
  • Foster collaborative working to support positive project outcomes.

Whether you need proactive strategies to prevent issues or expert guidance to resolve them, HF’s Construction team can help. Get in touch with our specialists here.