Construction Adjudication for Unpaid AfP UK 2026

A fast statutory dispute resolution process for UK construction contracts under section 108 of the Housing Grants, Construction and Regeneration Act 1996. An independent adjudicator gives a binding decision within 28 days (extendable to 42 days). Most commonly used by subcontractors to recover unpaid Applications for Payment.

(1) Subcontractor serves a Notice of Adjudication on the main contractor. (2) Subcontractor applies to a nominating body (typically RICS, ICE, CIArb or TeCSA) to appoint an adjudicator. (3) Subcontractor refers the dispute to the adjudicator within 7 days with all evidence. (4) Main contractor responds within 7-14 days (set by adjudicator). (5) Adjudicator may request further information or hold a meeting. (6) Decision issued within 28 days of referral (extendable to 42 days by agreement). (7) Decision binding pending final settlement; enforceable in court if ignored.

Adjudicator fees: typically £3,000-£10,000 depending on complexity and nominating body. Loser usually pays the adjudicator (set by the adjudicator). Each side typically bears its own legal costs. Total cost for a £100k AfP dispute: roughly £5,000-£25,000 all in. Recovery rate of subcontractor's costs varies; on weaker cases the adjudicator may apportion. Cost as percentage of recovered amount typically 5-15%.

Strong for subcontractors with valid AfPs and late or non-compliant Pay Less Notices. Adjudicators consistently uphold the rule: a late or invalid Pay Less Notice = full AfP value payable. Where the dispute is over genuine valuation differences (variations, defects, contra-charges), outcomes are mixed. Strong evidence trails (signed contracts, certified valuations, documented progress, photo evidence) materially improve success.

Possibly yes, but with reduced advance rates. Most construction finance providers won't fund the disputed portion of an AfP during live adjudication. They'll continue funding undisputed amounts on subsequent AfPs at normal rates. Once the adjudicator decides in your favour, the awarded amount becomes a known receivable that providers will fund at high advance rates. Pulse Cashflow and Bibby both have experience handling adjudication-funded receivables.

Adjudication: 28 days to decision, binding pending final settlement, costs £3-25k, ideal for live cashflow disputes. Court (TCC or Multi Track): 6-18 months to judgment, fully binding, costs £15-100k+, for complex multi-issue disputes or appeals from adjudication. For most unpaid AfP disputes, adjudication is faster, cheaper and gets cash flowing immediately. Court is the route for final resolution if a party refuses to accept the adjudicator's decision long-term.