How to Start an Adjudication: The Importance of Getting the Notice Right

Once a dispute has crystallised, the next step is to start adjudication properly. This begins with a single but crucial document — the Notice of Adjudication. Getting it right sets the tone for the entire process; getting it wrong can derail the claim before it begins.

What the Act Requires

Section 28 of the Construction Contracts Act 2002 sets out what a valid notice must include:

• The names and contact details of the parties;
• A brief description of the dispute;
• The relief or outcome sought; and
• The details of the location of the dispute.

The notice must also be served correctly on the other party. Errors in service or vague descriptions can later be challenged as jurisdictional defects.

Choosing an Adjudicator

Under Sections 33–34, the parties have five working days to agree on an adjudicator. If they cannot, either may apply to an Authorised Nominating Authority (ANA) such as Arbitrators' and Mediators' Institute of New Zealand (AMINZ), Royal Institution of Chartered Surveyors (RICS), Fair Way Resolution, or the Adjudicators Association of New Zealand (AANZ). The ANA then appoints an adjudicator, who confirms acceptance and issues a Notice of Acceptance, formally starting the timetable.

The choice of adjudicator can influence how efficiently the process runs. Select professionals experienced in the relevant technical and contractual issues.

Framing the Dispute

Clarity at this stage is critical. The notice defines the scope of the adjudication. Anything outside it cannot later be decided. Avoid broad or emotional statements — focus on facts: what was claimed, how it was valued, and why it remains unpaid or disputed.

A concise and well-structured notice demonstrates professionalism and helps the adjudicator and the respondent understand the case immediately.

Timing and Strategy

The referring party controls the timing of referral — an advantage if used strategically. Preparing evidence, key documents, and an initial draft of the adjudication claim before issuing the notice ensures readiness once the clock starts. Remember: once accepted, strict statutory deadlines apply (usually 5 working days for response and 20 for determination).

Common Pitfalls to Avoid

• Issuing the notice before a genuine dispute exists.
• Referring to multiple unrelated disputes in one notice.
• Failing to specify the relief sought.
• Serving the notice to the wrong address or via invalid means.

Practical Takeaway

The Notice of Adjudication is more than a formality — it establishes the adjudicator’s jurisdiction. A precise, compliant notice builds credibility and reduces the risk of procedural challenge later.
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If you are considering starting adjudication, seek guidance early. As an adjudicator and dispute-resolution practitioner, I’ve seen that success often depends on how the process begins.