Construction Disputes ' Christmas Ambush

• Published date: 16 December 2022
• Law Firm: Herrington Carmichael
• Author: Harriet Greener

In the run up to Christmas, most of us think food, tinsel and Christmas songs. For the lucky ones, your mind might be on the closure of your office given that many industries shut down during the Christmas period, if only for a few days.

The construction industry, like many others, is one of those industries that shuts down and re-opens in the new year.

It is uncommon for construction contracts, such as JCT's ('Joint Contracts Tribunal contracts), to specifically address the Christmas period and the industry shutdown. Instead, parties factor this period into the schedule of works. Whilst construction may temporarily shut down during the festive period, the disputes that arise do not, making Friday 23 December a dreaded day for many in the industry. The reason: Adjudication Notices.

If a contract falls under the remit of the Housing Grants, Construction and Regeneration Act 1996 ("the Construction Act"), a party has the statutory right to refer any dispute, at any time, for adjudication ("Adjudication Notices").

Adjudication is intended to be a swift and cost-effective process by which construction disputes can be settled, usually within a...