The Adjudicator’s Determination: What It Means and What Comes Next

Once the adjudicator has received all submissions and completed any meetings or site visits, the process moves to its most significant stage — the Determination. For many parties, this is the moment where uncertainty turns into clarity. But understanding what the determination actually means, and what must happen afterward, is critical to navigating the final phase of the Construction Contracts Act 2002 (CCA).

What Is an Adjudicator’s Determination?

A determination is the adjudicator’s written decision, delivered under Subpart 4 of the CCA. It sets out:

• The issues considered
• The findings and reasoning
• The amount (if any) payable
• Any orders relating to interest or costs
• Timeframes for compliance

The determination is not merely advisory. It is binding, and the losing party must comply — even if they disagree.

This “pay now, argue later” rule is a central pillar of adjudication in New Zealand. It ensures cash continues to flow through the industry, protecting contractors and subcontractors from crippling delays.

How Quickly Must Payment Be Made?

Unless the adjudicator specifies a different period, the default requirement is:

• Payment within 2 working days of receiving the determination.

This is intentionally short. The CCA aims to avoid prolonged stalling tactics and support financial stability in construction projects.

If the determination relates to rights and obligations rather than money (e.g., validity of a variation), the parties must comply with whatever directions the adjudicator has given.

What If a Party Disagrees with the Determination?

A common misconception is that parties can simply “appeal” an adjudicator’s determination. Under the CCA:

• There is no appeal.
• The only challenge is judicial review, which is limited to procedural issues (jurisdiction, natural justice).
• Substantive disagreements (e.g., valuation or factual findings) are dealt with later through arbitration or litigation, if the parties pursue it.

However, the determination remains binding in the meantime — it must be complied with even if further dispute resolution is planned.

This interim-binding effect is precisely what differentiates adjudication from other processes.

Non-Payment: What Happens Next?

If the losing party does not comply:

• The determination can be enforced through the District Court.
• The adjudicator’s determination is treated as a judgment debt, after filing a simple statutory declaration and paperwork.
• Enforcement tools then become available:
  • Attachment orders
  • Charging orders
  • Garnishee orders
  • Bankruptcy or liquidation steps

For contractors, this enforcement path is often faster and more cost-effective than traditional litigation.

Practical Tips: Making the Determination Work for You

• Act quickly — enforcement options are stronger when pursued early.
• Communicate professionally — especially where ongoing project relationships matter.
• Keep documentation organised — determinations are only as enforceable as the clarity of the underlying evidence.
• Seek advice if cashflow is at risk — delays can compound quickly.

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As someone who prepares, defends, and decides adjudication claims, I've seen countless parties misunderstand what a determination requires. Clarity at this stage prevents costly mistakes.