Construction Adjudication for Unpaid AfP UK 2026

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Statutory adjudication under section 108 of the Housing Grants, Construction and Regeneration Act 1996 (the Construction Act) lets UK construction subcontractors get a binding 28-day decision on an unpaid Application for Payment. The right is automatic on every UK construction contract and cannot be contracted out. Process: serve a Notice of Adjudication, refer the dispute within 7 days, the appointed adjudicator decides within 28 days (extendable to 42 days by agreement). Decision is binding pending final arbitration or court action. Most subcontractors who refer unpaid AfPs to adjudication win and recover within 6 weeks. Costs typically £3,000 to £10,000 in adjudicator fees plus legal time. Decision can be enforced by court order within 7 to 14 days of the deadline being missed.

Last updated: 8 May 2026.

Statutory adjudication under section 108 of the Housing Grants, Construction and Regeneration Act 1996 (the Construction Act) lets UK construction subcontractors get a binding 28-day decision on an unpaid Application for Payment. The right is automatic on every UK construction contract and cannot be contracted out. More detail + scope

Summary

Statutory adjudication under section 108 of the Housing Grants, Construction and Regeneration Act 1996 (the Construction Act) lets UK construction subcontractors get a binding 28-day decision on an unpaid Application for Payment. The right is automatic on every UK construction contract and cannot be contracted out.

Process: serve a Notice of Adjudication, refer the dispute within 7 days, the appointed adjudicator decides within 28 days (extendable to 42 days by agreement). Decision is binding pending final arbitration or court action. Most subcontractors who refer unpaid AfPs to adjudication win and recover within 6 weeks.

Costs typically £3,000 to £10,000 in adjudicator fees plus legal time. Decision can be enforced by court order within 7 to 14 days of the deadline being missed.

This page covers

construction adjudication UK: 28-day process for unpaid AfPs, costs, success rates, interaction with finance

Not covered here

General invoice finance education (see /guides/), individual provider reviews (see /providers/), full pricing breakdown (see /guides/costs/)

UK providers worth knowing

ProviderFee fromMin turnoverWhy it fits
Pulse Cashflow1.0%+£100kAdjudication-aware AfP funding
Bibby Financial Services0.5%+£100kConstruction with disputes handling
Ultimate Finance1.0%+£100kAfP funding with adjudication awareness
AP

Adam Parker

Founder & Managing Director, Muswell Rose, founder and PSC of Best Business Loans Ltd

Adam is the founder and managing director of Muswell Rose and a founder of Best Business Loans Ltd, the company behind Market Invoice. He spent over three years as managing director of Penny, a UK invoice finance business, and his career runs through insurance, mortgages, commercial finance and fintech lending. He writes the Market Invoice library.

Last reviewed: 30 July 2026

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Construction Adjudication UK FAQ

What is construction adjudication?

A fast statutory dispute resolution process for UK construction contracts under section 108 of the Housing Grants, Construction and Regeneration Act 1996. An independent adjudicator gives a binding decision within 28 days (extendable to 42 days). Most commonly used by subcontractors to recover unpaid Applications for Payment.

How does adjudication work for an unpaid AfP?

(1) Subcontractor serves a Notice of Adjudication on the main contractor. (2) Subcontractor applies to a nominating body (typically RICS, ICE, CIArb or TeCSA) to appoint an adjudicator. (3) Subcontractor refers the dispute to the adjudicator within 7 days with all evidence.

(4) Main contractor responds within 7-14 days (set by adjudicator). (5) Adjudicator may request further information or hold a meeting. (6) Decision issued within 28 days of referral (extendable to 42 days by agreement). (7) Decision binding pending final settlement; enforceable in court if ignored.

How much does construction adjudication cost?

Adjudicator fees: typically £3,000-£10,000 depending on complexity and nominating body. Loser usually pays the adjudicator (set by the adjudicator). Each side typically bears its own legal costs. Total cost for a £100k AfP dispute: roughly £5,000-£25,000 all in. Recovery rate of subcontractor's costs varies; on weaker cases the adjudicator may apportion. Cost as percentage of recovered amount typically 5-15%.

What's the success rate for unpaid AfP adjudication?

Strong for subcontractors with valid AfPs and late or non-compliant Pay Less Notices. Adjudicators consistently uphold the rule: a late or invalid Pay Less Notice = full AfP value payable. Where the dispute is over genuine valuation differences (variations, defects, contra-charges), outcomes are mixed. Strong evidence trails (signed contracts, certified valuations, documented progress, photo evidence) materially improve success.

Can I get construction finance during an adjudication?

Possibly yes, but with reduced advance rates. Most construction finance providers won't fund the disputed portion of an AfP during live adjudication. They'll continue funding undisputed amounts on subsequent AfPs at normal rates. Once the adjudicator decides in your favour, the awarded amount becomes a known receivable that providers will fund at high advance rates. Pulse Cashflow and Bibby both have experience handling adjudication-funded receivables.

Adjudication vs court for unpaid construction debt?

Adjudication: 28 days to decision, binding pending final settlement, costs £3-25k, ideal for live cashflow disputes. Court (TCC or Multi Track): 6-18 months to judgment, fully binding, costs £15-100k+, for complex multi-issue disputes or appeals from adjudication. For most unpaid AfP disputes, adjudication is faster, cheaper and gets cash flowing immediately. Court is the route for final resolution if a party refuses to accept the adjudicator's decision long-term.