Fixed Fees for Construction Adjudication and Enforcement

We want to help contractors and employers avoid costly litigation, and limit the cost of adjudication, by offering fixed fees.

Why adjudication?

Adjudication was introduced to the construction industry a little over 20 years ago. It is often described as a “pay first, argue later” process for disputes. One of its primary purposes was to try and protect contractor cash-flow during the project life-cycle. It is now the most widely used form of dispute resolution within the construction industry. Whilst there is evidence that the cost of construction adjudication has grown, as it has become more formalised with detailed legal submissions and evidence, it is still significantly cheaper than litigation or arbitration. It is fast, with decisions usually being produced within 28 days, and avoids your business becoming embroiled in open-ended, expensive and time consuming litigation.

Our fixed fee adjudication service

We are adjudication experts and have designed a fixed fee adjudication service for low to medium value claims for a specified amount. Often these will be claims on the basis that a certified amount has fallen due but a contractor or sub-contractor has not been served with a payless notice.

Prepare and serve a notice of adjudication

Appoint an adjudicator

Prepare and serve a notice of referral

Deal with the timetable

Review and advise on the other party’s response

Prepare and serve a reply to the response (if required)

Prepare and serve a witness statement (if required)

Serve your expert’s report (if required)

Attend or arrange representation at any hearing in London of up to half a day

Review and forward you the adjudicator’s decision with our comments

Advise you on the adjudicator’s appointment

Deal with the timetable

Prepare and serve a notice of response

Review and advise on the referring party’s reply (if applicable)

Prepare and serve a rejoinder (if applicable and required)

Prepare and serve a witness statement (if required)

Serve your expert’s report (if required)

Attend or arrange representation at any hearing in London of up to half a day

Review and forward you the adjudicator’s decision with our comments

Our fixed fees for adjudication

Our fixed fee adjudication service is set out below. It includes a barrister’s fees if necessary and is exclusive of VAT. It does not include the fees of the adjudicator which are normally awarded between the parties (see ‘Recovering adjudication and enforcement fees’ below).

Value of claim

Up to £100,000

£100,001 to £250,000

Over £250,000

Our fixed fees (ex. VAT)

£8,950.00

£12,950.00

We may be able to agree a fixed fee depending on the circumstances but if not we will provide a competitive estimate to deal with your construction adjudication

For the purposes of calculating your claim value you can ignore VAT and interest. For example, a claim for £87,000 plus VAT and interest will fall within the first band and our fixed fee will be £8,950.00 plus VAT.  Whilst our fees will include the fees of one of the barristers we work with regularly, if they are required, they do not include any other third party fees or expenses. For example, if any expert evidence is required that expert’s costs would be additional.

Our fixed fee adjudications must be completed within the standard period of 28 days from the date of referral. In the event that they take longer, additional fees may become payable but we will agree these with you as soon as it becomes apparent that the construction adjudication is going to go beyond the usual 28 day period.

If your dispute is very complex or involves an exceptionally large volume of documents it may not be suitable for our fixed fee service. In that event we will let you know at the earliest opportunity and provide you with a competitive estimate.

Our adjudication enforcement service

If the adjudicator awards a payment it is usually payable immediately or within 14 days and most are paid within time. However, if the payment is not made then we understand that you want to enforce payment as quickly and economically as possible.

Adjudicators’ decisions are enforced by applying to court for a judgment. This and any other business connected with construction adjudication is dealt with in the Technology and Construction Court (TCC). Our offices are a short walk from the TCC in London.

To reflect the tight timescale of construction adjudication the TCC has a rapid procedure for enforcing an adjudicator’s decision. It aims to have the hearing heard within 28 days, mirroring the 28 day timetable for construction adjudication.

Prepare a claim form, particulars of claim, application notice, draft directions and witness statement

Deliver the proceedings to the TCC in person for issuing

Serve the issued proceedings and directions on the defendant

Prepare a hearing bundle and lodge the same together with a skeleton argument and authorities with the court

Have a barrister to represent you at the hearing (included within our fixed fees)

Our fixed fees for enforcement

Value of adjudication award to be enforced

Up to £100,000

£100,001 to £250,000

Over £250,000 and any value where the paying party is contesting the adjudication award and/or defending the judgment application.

Our fixed fees (ex. VAT)

£4,250.00

£6,250.00

We may be able to agree a fixed fee depending on the circumstances but if not we will, if possible, provide a competitive estimate, to deal with enforcement of your construction adjudication.

The above fees will include the fees of one of the barristers we work with regularly who will attend the hearing in court. They do not include any other third party fees or expenses, such as the Court’s fee to issue the proceedings, which for awards between £10,000 and £200,000 is calculated at 5% of the award amount plus £255.

If the proceedings are defended by the paying party on any basis, or become particularly complicated for some reason, we may not be able to complete the proceedings within the fixed fee.

In that event we will let you know at the earliest opportunity and provide you with a competitive estimate.

We are also pleased to represent defendants who wish to contest enforcement proceedings and fees would be agreed on a case by case basis for which we would provide a competitive estimate.

Recovering adjudication and enforcement fees

In construction adjudication the adjudicator only has power to award payment of his or her own fees as between the parties and not the costs of the parties themselves.

However, with enforcement proceedings the court can award costs between the parties which is usually on the basis that the loser pays. These costs are assessed by the court at the end of the judgment hearing and typically all of the court fees are awarded if the claimant wins together with 70% to 80% of their legal costs.

For more information and help please contact one of our experts