Can you skip the adjudication step?

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A health board’s right to raise a court action against its contractors was challenged on the grounds that the contract required adjudication be undertaken first. Shona Frame and Kathryn Moffett unpack the implications of the case

Escalating dispute resolution provisions that contain a series of steps to resolve disputes are increasingly common and can be useful in focusing issues or reaching resolution. However, where it is a requirement for each step to be followed before moving on to the next and there are issues of time bar, they can be problematic.

The operation of the NEC3 provision requiring disputes to be referred to adjudication before resorting to the tribunal (whether court or arbitration) was considered by the Court of Session in Greater Glasgow Health Board vs Multiplex Construction Europe Ltd and Others.

The health board raised an action against a number of defenders in relation to alleged defects in the construction of the Queen Elizabeth University Hospital in Glasgow.

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