Start by talking
Most construction disputes are settled by negotiation. It works best as a meeting between people with authority to settle, with the key documents on the table. Put offers to settle in writing marked “without prejudice”, so that they cannot be shown to an adjudicator, arbitrator or judge if talks fail, and keep them separate from your open correspondence.
The main options compared
| Method | Typical time | Cost | Is the outcome binding? |
|---|---|---|---|
| Negotiation | Days to weeks | Low | Only once a settlement is agreed |
| Mediation | Usually a one day meeting, arranged within weeks | Mediator’s fee, usually shared, plus your own costs | Only if a settlement is signed |
| Adjudication | About five to seven weeks from notice to decision | Adjudicator’s fee plus your own costs, which are usually not recoverable | Yes, until finally decided by a court, arbitration or agreement |
| Expert determination | Weeks to months | Expert’s fee plus your own costs | As the contract provides; usually final, with very limited challenge |
| Arbitration | Months to years | Arbitrator’s fees plus legal costs; the loser usually pays much of the winner’s costs | Yes, final, with limited rights of appeal |
| Court (Technology and Construction Court) | Often a year or more to trial | Highest; the loser usually pays much of the winner’s costs | Yes, final, subject to appeal |
The times and costs are typical ranges only. Every dispute is different.
Mediation
A mediator helps the parties negotiate but does not decide anything. Mediation is confidential, quick to arrange and flexible: a settlement can include things no tribunal could order, such as future work. The courts expect parties to consider it, can order them to engage in it (Churchill v Merthyr Tydfil County Borough Council [2023] EWCA Civ 1416), and can penalise an unreasonable refusal when deciding who pays the costs.
Adjudication
Adjudication is a statutory right under the Construction Act. An adjudicator decides the dispute within 28 days of the referral, or 42 days if the referring party agrees. It suits payment disputes, valuations, extensions of time and defects, and the courts enforce decisions quickly. The decision is binding until the dispute is finally decided another way, but most are never revisited. See our guide to construction adjudication.
Expert determination
Some contracts send particular questions, often technical or valuation points, to an independent expert whose decision is final and binding. The courts will rarely interfere, so check what your clause covers and what the expert is asked to decide before you agree to it.
Arbitration
If your contract has an arbitration agreement, final decisions are made by an arbitrator rather than a court, under the Arbitration Act 1996. Arbitration is private, the parties can choose a tribunal with construction expertise, and the award is final, with only limited rights of appeal. It is usually slower and more expensive than adjudication.
Going to court
Construction claims are heard in the Technology and Construction Court, in London and at regional centres, with smaller claims in the county court. Before issuing a claim, the Pre-Action Protocol for Construction and Engineering Disputes generally requires a letter of claim, a response (normally within 28 days, which the parties can agree to extend up to a maximum of three months) and a meeting to try to resolve the dispute. The protocol does not apply to proceedings to enforce an adjudicator’s decision.
Watch the time limits
Claims under a simple contract must generally be brought within six years of the breach, and claims under a contract made as a deed within twelve years. Contracts can also make a final statement or final payment notice conclusive unless it is challenged within a short period, sometimes only a few weeks. Diarise those dates as soon as the document arrives.
How to choose the right route
- You are owed money and the other side missed its notices: adjudication for the notified sum.
- You disagree about value or time, and the sum justifies the work: adjudication.
- You want to keep the relationship, or the issues are wide: negotiation or mediation, perhaps alongside adjudication.
- A narrow technical question, and the contract provides for it: expert determination.
- A very large or complex dispute, or one needing a final decision with rights of appeal: arbitration or court.
Whatever the route, the first step is the same: gather the documents made at the time and set out your claim clearly in writing. Our guide to site records explains which documents matter most.
When to get help
Advice early in a dispute costs far less than advice late. Mill Court Consultants advises contractors and subcontractors on payment disputes, adjudication and claims. Contact us through mill-court.com or at ask@mill-court.com.
Questions
What is the quickest way to resolve a construction dispute?
Adjudication gives a binding decision within about five to seven weeks of the notice of adjudication. Negotiation or mediation can be quicker still, if both sides want to settle.
Can I go to court instead of adjudicating?
Yes. Adjudication is a right, not an obligation. You can go to court or, if your contract has an arbitration clause, to arbitration, although both take far longer and cost more.
Who pays the costs in a construction dispute?
In court and arbitration the loser usually pays a large part of the winner’s costs. In adjudication each party normally pays its own costs, and the adjudicator decides who pays the adjudicator’s fees.
Is mediation compulsory?
Not automatically, but the courts expect parties to consider it, can order them to engage in it, and can penalise an unreasonable refusal when deciding who pays the costs.
General guidance on the law of England and Wales, not legal advice. Last reviewed 2 November 2026.