Contract disputes are the lifeblood of UK construction litigation. From payment delays to scope disagreements, they arise in nearly every major project. Yet the legal mechanisms used to resolve them—adjudication and arbitration—are under pressure to deliver faster, more defensible outcomes.
Statutory adjudication, introduced by the Housing Grants, Construction and Regeneration Act 1996, remains the dominant forum. It’s fast, interim-binding, and widely used. But its 28-day timeline often forces legal teams to triage thousands of documents under immense pressure.
Meanwhile, the Arbitration Act 2025 is revitalising arbitration with reforms aimed at proportionality, digital disclosure, and procedural flexibility. For disputes requiring finality or technical depth, arbitration is regaining ground.
In both forums, the complexity of construction contracts—and the data they generate—has outpaced traditional review methods.
Contract Complexity: A Strategic Challenge
Modern construction projects are multi-party ecosystems. A single dispute may involve:
- A developer, main contractor, and multiple subcontractors
- Collateral warranties, novation agreements, and bespoke amendments
- Conflicting obligations across JCT, NEC, or FIDIC frameworks
In Van Oord UK Ltd v Dragados UK Ltd [2023] EWHC 155 (TCC), the High Court examined overlapping payment obligations and delay claims across multiple contracts. The case highlighted how fragmented documentation and inconsistent clause interpretation can derail even well-prepared adjudications.
Legal teams must now manage not just the law—but the architecture of the contracts themselves. This is especially true in construction contract disputes UK, where adjudication timelines and multi-party obligations demand precision.
AI for Clause Extraction and Contract Analysis
Artificial intelligence is transforming how legal teams approach construction disputes. NLP-powered tools can:
- Extract and compare clauses across main contracts and subcontracts
- Flag inconsistencies in payment terms, delay mechanisms, and termination rights
- Identify missing or non-standard provisions that increase risk
This is especially valuable in adjudications, where referral notices must be tightly argued and supported by precise contractual language. AI enables faster clause mapping, stronger legal arguments, and better early case assessment.
Managed Review for Adjudication Timelines
Adjudication’s 28-day clock is unforgiving. Legal teams must identify relevant documents—payment applications, site instructions, delay notices—within days. Managed review services, powered by AI, offer:
- Prioritised document sets based on relevance and custodianship
- Consistent coding for privilege, responsiveness, and contractual linkage
- Audit trails that support enforcement or follow-on litigation
In Sudlows Ltd v Global Switch Estates Ltd [2023] EWCA Civ 813, the Court of Appeal reinforced the importance of procedural fairness in adjudication enforcement. A defensible review process is no longer a luxury—it’s a necessity.
Strategic Implications for Legal Leaders
General counsel and heads of litigation in the construction sector must now treat eDiscovery as a strategic asset. This means:
- Embedding AI into contract lifecycle management and dispute workflows
- Partnering with review providers who understand construction-specific terminology and adjudication dynamics
- Preparing for a future where digital defensibility is as important as legal merit
The Arbitration Act 2025 and the continued dominance of adjudication signal a dual-track future for adjudication vs arbitration in construction. Legal teams equipped with modern review capabilities will be better positioned to respond quickly, argue persuasively, and protect commercial interests using AI contract analysis tools.
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