What happens after an adjudication decision?
The losing side pays within the time the decision sets, and if it does not, the winner can enforce the decision in court.
Updated: . By Jack Butler-Kettle, Construction Claims Consultant.
The answer
Four things happen, in order. First, the paying side pays by the date in the decision. The adjudicator's fees are paid as the decision says, usually by the losing side, though both sides are jointly liable to the adjudicator. Second, if payment does not arrive, the winner applies to court for summary enforcement. That is quick, and it succeeds unless the adjudicator lacked jurisdiction or acted unfairly. Third, the losing side may, after paying, start a fresh dispute over the true value by adjudication, court or arbitration, subject to the contract's dispute clause. Fourth, the account is updated so the decided sum shows as already paid in the next payment, not argued again. What the losing side cannot do is hold back the decided sum while it thinks about it.
Example
Illustrative example. The scenario and figures are invented.
The facts
An adjudicator decides in your favour for £74,000 plus the adjudicator's fees, payable by your main contractor within 7 days. Your QS has to record the payment and prepare for what may follow.
What happens
- Your main contractor pays the £74,000 within the 7 days, and pays the fees on the adjudicator's invoice.
- Your QS records the £74,000 as received in the next application.
- Your QS keeps the records behind the value together, in case your main contractor starts a true value dispute.
The outcome
Your file is ready if your main contractor makes a later referral, should it think the difference worth it.
Late Payment Claim chases a decided sum until it is paid, with the interest the decision or the law allows.