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 applies to every construction contract the Act covers and cannot be contracted out. Process: serve a Notice of Adjudication, refer the dispute within 7 days, and the adjudicator decides within 28 days of referral (extendable by up to 14 days with the referring party's consent, or longer if both parties agree). The decision is binding until the dispute is finally settled by agreement, arbitration or court action (section 108). A subcontractor with a valid AfP and no valid Pay Less Notice is usually in a strong position. Costs are the adjudicator's fees plus your own legal time, and vary with the size and complexity of the dispute. If the other side ignores the decision, you can ask the court to enforce it.

What this page covers

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 FinanceNot published£1mConstruction named, but no adjudication policy published
Bibby Financial ServicesNot publishedNot publishedConstruction with disputes handling
Ultimate FinanceNot publishedNot publishedAfP 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.

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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 of referral (extendable by up to 14 days with the referring party's consent, or longer if both sides agree). 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 by up to 14 days with the referring party's consent, or longer by agreement). (7) Decision binding pending final settlement; enforceable in court if ignored.

How much does construction adjudication cost?

There are two parts: the adjudicator's fees, which depend on the complexity of the dispute and the time the adjudicator spends, and your own legal or claims-consultant costs. The adjudicator decides who pays their fees, usually the losing party, and each side normally bears its own legal costs. Ask the nominating body and any adviser for a fee estimate before you refer, and weigh it against the sum in dispute.

What's the success rate for unpaid AfP adjudication?

Strong for subcontractors with valid AfPs and late or non-compliant Pay Less Notices. Where the payer has not served a valid Pay Less Notice in time, the notified sum is payable in full under the Act, which is why these cases tend to favour the subcontractor.

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. Ask any provider directly how it treats a disputed AfP and an adjudication award before you rely on it.

Adjudication vs court for unpaid construction debt?

Adjudication: 28 days to decision, binding pending final settlement, usually far cheaper than litigation, suited to live cashflow disputes. Court (the Technology and Construction Court or the County Court): months to judgment, fully binding, and more expensive, suited to complex multi-issue disputes or a final determination after 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.