HHG Construction Law series: Part Four: Timing issues in adjudications, contractors beware

Rapid adjudication of payment disputes can literally save a construction contractor's business. But before you can adjudicate a pay dispute, one has to exist.

There are two common situations where despite appearances, no pay dispute exists.

First, the work scope may change as a result of directions or site instructions from the principal but the contract price will not necessarily change as a result. If the contractor does not claim a price variation within the time and in the way that the contract prescribes, it may lose its right to be paid anything at all for the extra work. In order to be adjudicated, a payment right has to be disputed; in order to be disputed, a payment right has to exist under the contract. If there is no payment right under the contract because the contractor did not claim payment on time or properly, there will be nothing to adjudicate.