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ARTICLE · 17 MAY 2015

Adjudication – To Be (Bound), Or Not To Be?

The recent case of Khurana v. Webster Construction Limited [2015] EWHC 758 (TCC) highlights the need for care when agreeing to be "bound" by an adjudicator's award.

United KingdomLitigation, Mediation & Arbitration

The recent case of Khurana v. Webster Construction Limited [2015] EWHC 758 (TCC) highlights the need for care when agreeing to be "bound" by an adjudicator's award. Adjudication is widely used in the construction industry to resolve disputes. It has various advantages over court proceedings, in particular speed and cost. One potential disadvantage is that an adjudication award is not technically final and binding, although it should be said that in most cases the parties do accept the decision.

However, that is not always the case. An adjudicator's decision is often described as being "temporarily binding", meaning that the award stands until the whole case is finally settled, or determined by legal proceedings, whether in court or by way of arbitration. In other words, neither party will be precluded from running the dispute which is submitted to the adjudicator again afresh, regardless of the existence of his decision. This is enshrined in statute by s. 108 of the

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