Adjudication has become a critical fast track dispute resolution mechanism across modern project delivery and is increasingly relevant within Construction & Projects Disputes in the UAE and wider region. Designed to maintain cashflow and avoid prolonged interruption to works, adjudication allows parties to obtain a binding interim decision on payment, variations, delays, defects or other contractual issues within a short period, typically 28 days. For contractors, subcontractors and employers alike, adjudication offers a practical route to resolving disputes during the life of a project without resorting immediately to arbitration or litigation. Understanding how adjudication operates, when it is advantageous, and how to prepare an effective case is essential for project stakeholders seeking rapid, cost effective dispute resolution.
Adjudication was introduced to address one of the construction industry’s greatest risks: cashflow disruption caused by lengthy disputes. Its purpose is not to deliver a final, exhaustive determination but to provide a quick, enforceable decision that keeps the project moving. Parties remain free to pursue arbitration or litigation later, yet most adjudication decisions are accepted as final because they provide a commercially balanced and practically useful outcome.
Although procedural rules vary by jurisdiction and contract, adjudication generally follows a structured sequence designed for speed and efficiency.
The referring party issues a notice setting out the nature of the dispute, the issues to be decided and the remedy sought. This step triggers strict timelines and limits the adjudicator’s jurisdiction to the issues identified.
An adjudicator is appointed by agreement or through a nominating body identified in the contract. Appointees are usually specialist construction lawyers, engineers, project managers or quantity surveyors with expertise relevant to the dispute.
Within a defined period, often seven days, the referring party submits a comprehensive referral including facts, contract terms, evidence, expert inputs and legal arguments. The strength of the referral often determines the outcome.
The responding party has limited time to reply and may submit counterarguments, supporting documentation and rebuttal evidence. Tight timelines require parties to rely heavily on contemporaneous project records.
The adjudicator issues a written decision that becomes immediately binding unless revised in later arbitration or litigation. Parties must comply with the decision without delay, promoting continuity in project delivery.
Because adjudication focuses on urgent matters, it is often used to resolve issues that affect cashflow and immediate project performance.
These disputes benefit from rapid determination because they directly impact monthly payments, project sequencing and commercial stability.
Adjudication is widely considered the most efficient forum for urgent construction disputes due to several core advantages.
The strict timetable promotes fast resolution. This prevents strategic delay tactics and helps parties maintain momentum on site.
Because the process is streamlined, adjudication is significantly less expensive than arbitration or litigation. It reduces the need for extensive evidence, expert reports or lengthy hearings.
Adjudicators are usually construction specialists who understand programming, valuation and contract administration. This increases the quality and practicality of decisions.
Decisions must be complied with immediately, ensuring that payments flow and work continues. This reduces project disruption even where parties disagree substantively.
Despite its benefits, adjudication presents challenges that parties must anticipate.
The speed of the process can disadvantage parties who lack good record keeping or rapid access to documentation. Poorly prepared submissions reduce the chances of success.
Because decisions are binding only until finally determined, unresolved issues may later be reopened in arbitration. This creates uncertainty for complex, multi party disputes requiring deeper factual or technical analysis.
Adjudicators can only decide issues that fall within the precise scope of the referral. Ambiguous or overly broad referrals can lead to jurisdictional objections or unenforceable decisions.
Successful adjudication depends heavily on disciplined contract administration and early strategic planning.
Being prepared reduces the risk of adverse findings and increases the credibility of the case presented.
Most jurisdictions allow adjudication decisions to be enforced rapidly through courts, often via summary processes. This reinforces the integrity of the mechanism and ensures that parties cannot ignore or delay compliance. In international projects, enforcement depends on local legislation and the contractual framework, making careful drafting essential during contract negotiation.
The UAE’s construction sector is increasingly incorporating adjudication provisions into major contract frameworks, particularly where international stakeholders seek fast and predictable dispute resolution. While not yet as widely institutionalised as arbitration, adjudication is gaining traction through bespoke contract clauses, institutional rules and project specific mechanisms. Its adoption is expected to increase as developers, contractors and lenders prioritise rapid dispute management to safeguard cashflow and reduce the risk of prolonged project delays.
Adjudication is an invaluable tool for resolving urgent construction disputes efficiently while preserving project continuity. Its speed, procedural flexibility and specialist decision making make it ideal for addressing cashflow and valuation issues that arise during fast moving development cycles. By integrating strong contract administration, clear notice procedures and effective evidence management, parties can leverage adjudication to achieve timely, enforceable outcomes and minimise disruption to complex construction projects.
