Adjudication: Addressing disputes in engineering projects
Engineering projects, whether in the construction, infrastructure, or industrial development, are complex undertakings involving multiple stakeholders, working to tight timelines, and incorporating significant financial investments.
Due to the complexity of construction and engineering projects, it can be argued that disputes are almost inevitable. Adjudication has emerged as a vital mechanism for resolving these disputes efficiently and fairly. However, the process is not without its challenges.
What is Adjudication?
Adjudication is a form of dispute resolution commonly used in engineering and construction contracts. It is a statutory or contractual process where an independent adjudicator is appointed to make a binding decision on a dispute, typically within a short timeframe (often 28 days). It is designed to be faster and less formal than litigation or arbitration, allowing projects to continue while disputes are resolved.
FIDIC standard forms of contracts are fair and well-respected standards for contractual agreements used in engineering and construction projects. They are globally recognised, fair and comprehensive forms of contractual agreement forms.
Here are some common forms of disputes in engineering projects and why adjudicators or a dispute board/DAAB are needed:
- Payment issues (e.g., delayed or non-payment)
- Variations in scope of work
- Defects in design or workmanship
- Delays and extensions of time
- Contract or contractual terms interpretation.
There are many benefits of adjudication which include among others; the cost effectiveness of the procedure, the speed of the resolution of disputes, and the option for parties to be able to continue with the project in a timely manner once the dispute is resolved. Arguably, as the decision provided is binding, it means the parties can rely on the decision in the interim and thereby helps parties avoid going to arbitration or litigation.
What are some new developments in adjudication?
FIDIC has for a long time advocated for DAAB over DABs. In the 2017 editions of the FIDIC suite promote the establishment of a standing, impartial panel which is appointed at the project’s commencement. The aim is to proactively avoid disputes and provide binding decisions. Should disputes arise, the DAAB can conduct regular site visits and offer informal assistance. It is also expected that they would issue decisions within 84 days. These decisions are immediately binding on the parties.
The road to dispute resolution, including the negotiations between the parties when conflicts arise is not always a straight one. DAABs and solo adjudicators can face challenges and may need guidance in for this process.
The FIDIC Dispute Avoidance and Adjudication Forum was first established in 2022 and was created to provide space to practitioners to discuss current global issues in dispute avoidance and adjudication.
In December 2025, during the International Contract Users’ Conference in London, FIDIC launched its third Practice Note. The FIDIC Dispute Avoidance III; Decisions: Preparation and Composition. This new practice note covers issues and updates relating to dispute board decisions, as well as detailing a number of best practice tasks and techniques for producing a dispute board decision. It has been praised for providing practical guidance to adjudicators when writing decisions under the FIDIC forms of contract.
The Practice note also includes, among others, methodologies for managing and reviewing the referral process, jurisdictional challenges, as well as an overview on structuring the decision document and on compliance with FIDIC contract provisions and the post-decision considerations.
How can you get involved?
Adjudication will continue to play a crucial role for maintaining momentum in engineering projects by offering a swift and practical method of dispute resolution. However, its effectiveness depends on how well parties understand and manage the process. By anticipating challenges and preparing accordingly, stakeholders can leverage adjudication to resolve disputes efficiently and keep projects on track.
FIDIC offers an international qualification to practitioners working in the field of adjudication and dispute avoidance. The FIDIC Certified Adjudicator certification is a senior level qualification for professionals who have a strong knowledge of how FIDIC standard form of contracts apply and the how to mediate or manage disputes.
To find out more about this certification programme, check out our programme page and sign up for our next exam session using this link: https://fcl.fidic.org/our-programmes/adjudicators.
