Payment and Liability

Under section 59 of the Act, payment of any amount determined by the adjudicator to be paid to a party must be made within two working days after the date on which a copy of the adjudicator’s determination is given to the parties, unless the adjudicator determines a later date for payment.

Determinations made in respect of construction contracts entered into before 1 December 2015

For construction contracts entered into before 1 December 2015, an adjudicator’s determination under section 48(1)(a) of the Act, that an amount of money is payable under a construction contract, is binding on the parties and is enforceable in the courts as a debt due, or by entry as a judgment until or unless the dispute is finally determined by arbitration or by court proceedings, or resolved by agreement or mediation after the dispute is determined by the adjudicator.
The binding effect of an adjudicator’s determination under section 48(1)(a) is made clear in section 60 of the Act. Section 60 provides that an adjudicator’s determination is binding on the parties to the adjudication and continues to be of effect even though a party has applied for judicial review of the determination or any other proceeding relating to the dispute between the parties has been commenced.
An adjudicator’s determination under section 48(1)(b) of the Act, about the rights and obligations of the parties to a construction contract where payment of money is not claimed, is not enforceable. However, if any party fails to comply fully with an adjudicator’s determination about the parties’ rights and obligations under the relevant construction contract, a party may bring proceedings in any court to enforce that party’s rights under the contract and the court is obliged to have regard to, but is not bound by, the adjudicator’s determination. The words have regard to mean just what they say and accordingly the court or tribunal is simply bound to give due consideration and weight to the determination but, having done so, the court or tribunal is entitled to reach a different conclusion to the adjudicator in relation to the disputed matter.

Determinations made in respect of construction contracts entered into from 1 December 2015

For construction contracts entered into or renewed from 1 December 2015 an adjudicator’s determination under section 48(1)(a) of the Act that an amount of money is payable under a construction contract or a determination under sections 48(1)(a) or (2) is binding on the parties and is enforceable in the courts as a debt due or by entry as a judgment until or unless the dispute is finally determined by arbitration or by court proceedings, or resolved by agreement or mediation after the dispute is determined by the Adjudicator.
 

An Authorised Nominating Authority
under section 65 of the Construction Contracts Act 2002