The Right to Adjudicate: Your Fast-Track Path to Resolving Construction Disputes

Disputes are an inevitable part of construction. Tight timeframes, evolving designs, and payment pressure mean disagreements can quickly arise. Fortunately, New Zealand’s Construction Contracts Act 2002 (CCA) provides a clear and powerful tool to resolve them — adjudication.

What is Adjudication?

​Adjudication is a statutory dispute-resolution process created to keep cash flowing in the construction industry. It allows any party to a construction contract to have a dispute determined by an independent adjudicator, usually within 20 working days. The guiding principle is simple: “pay now, argue later.”

Instead of waiting months for a court outcome, an adjudicator’s determination can be obtained in weeks — ensuring contractors and subcontractors are not starved of cash while the project continues.

Who Can Use It?

Anyone who is party to a construction contract (as defined under Section 5 of the Act) — clients, head contractors, subcontractors, consultants — can invoke adjudication. The dispute might concern:

• Non-payment or undervalued payment claims;
• Variations or disputed scope;
• Time extensions or delays; or
• Alleged defects or incomplete work.

Importantly, adjudication rights apply whether or not the contract expressly provides for it. The CCA overrides any contractual limitations.

When Does the Right Arise?

A dispute “crystallises” when one party asserts a claim and the other either disputes it or fails to respond. At that point, the referring party can issue a Notice of Adjudication under Section 28 of the CCA to start the process.
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Why It Matters?

For many smaller contractors, cashflow is survival. Adjudication was introduced to stop the destructive cycle of payment delays and prolonged legal battles. It offers:

• Speed – decisions within weeks;
• Affordability – compared with court or arbitration;
• Binding effect – enforceable like a court judgment; and
• Flexibility – disputes of any size can be referred.

While determinations are “interim-binding,” they remain effective unless overturned by arbitration or litigation. In practice, most are accepted and complied with.

Practical Takeaway

Understanding this statutory right early can prevent disputes from escalating. Well-prepared documentation — clear payment claims, variation notices, and correspondence — will make any future adjudication faster and stronger.

As a practising adjudicator, I have seen how this process restores fairness and balance between contracting parties. When used properly, it is not merely a remedy of last resort but a practical project management tool.