Adjudication involves a process where a neutral third party hears a dispute and renders a decision, which is binding on the parties unless revised in an arbitration or at trial. The Adjudicator is usually a subject-matter expert chosen by the parties, and having their contractual authority to inquire into the merits of their dispute. The process is quick, straightforward can be quite informal.

Adjudication is becoming increasingly popular in the building and construction industry and is provided for in a variety of standard form construction contracts. While the Adjudicator’s decision is considered to be of a temporary nature, in practice few adjudication decisions are subsequently referred to arbitration or litigation. Instead, most are accepted by the parties as final.