Definition

In an APC context, dispute resolution techniques are the practical processes used to resolve disagreements once they arise. Mediation is a voluntary, confidential, non-binding facilitation process. Adjudication is a statutory, interim binding procedure specific to construction contracts under the Housing Grants, Construction and Regeneration Act 1996. Arbitration is a private, final and binding process governed by the Arbitration Act 1996. Each sits at a different point on the spectrum between consensual resolution and imposed decision.

Why this matters for Conflict Avoidance, Management and Dispute Resolution

  • Surveyors are frequently asked by clients to recommend the most appropriate resolution method — the choice has significant cost, time and relationship implications.
  • Adjudication is a statutory right that candidates must be able to explain precisely, including its 28-day timetable and temporary binding effect.
  • Arbitration is commonly specified in commercial contracts as the final dispute resolution mechanism, making it a practical reality in many surveying contexts.
  • Understanding mediation supports the RICS emphasis on conflict avoidance and proportionate resolution before resorting to formal proceedings.

Key principles

Mediation

Mediation is voluntary and either party may withdraw before settlement is reached. A mediator does not decide the dispute; they facilitate structured negotiation, often holding private sessions ("caucuses") with each side to test positions and identify common ground. Any settlement is recorded in a binding agreement. Proceedings are without-prejudice and confidential. Mediation is particularly effective where an ongoing commercial relationship is worth preserving. The RICS Dispute Resolution Service (DRS) and CEDR both provide mediators for property and construction disputes.

Adjudication

Adjudication is the dominant formal procedure in UK construction disputes. An adjudicator is appointed within seven days of the Notice of Adjudication, and must reach a decision within 28 days of the referral notice (extendable by 14 days with the referring party's consent). The decision is temporarily binding — enforceable by summary judgment — but either party can have the underlying dispute finally determined by arbitration or litigation. The speed and cost of adjudication make it the default first resort for payment disputes and other construction disagreements.

Arbitration

Arbitration is a private process in which the parties agree to submit their dispute to one or more arbitrators whose award is final and binding. Under the Arbitration Act 1996, courts can only interfere on limited grounds. Arbitration is slower and more expensive than adjudication but produces a final award that is enforceable internationally under the New York Convention — a significant advantage in cross-border contracts. The CIArb (Chartered Institute of Arbitrators) provides trained arbitrators for property and construction disputes.

Comparative summary

  • Mediation: voluntary, non-binding, fast, confidential, preserves relationships.
  • Adjudication: statutory, temporarily binding, 28-day timetable, low cost, construction-specific.
  • Arbitration: contractual, finally binding, slower, private, internationally enforceable.

Relevant RICS guidance and legislation

  • RICS guidance note, Conflict Avoidance and Dispute Resolution in Construction — framework for selecting the appropriate technique.
  • Housing Grants, Construction and Regeneration Act 1996 — statutory adjudication right.
  • Arbitration Act 1996 — governs arbitral proceedings and award enforcement.
  • Pre-Action Protocol for Construction and Engineering Disputes — encourages mediation before proceedings.
  • RICS Rules of Conduct (effective 2 February 2022) — competence includes advising on the most proportionate procedure.

Ethics and Rules of Conduct angle

Recommending the most proportionate dispute resolution technique is an expression of the RICS duty of competence and the obligation to act in clients' best interests. Advising a client to mediate when the commercial relationship is worth preserving, rather than defaulting to adjudication, reflects both professional judgement and responsibility. Equally, a surveyor who allows a client to pursue unnecessarily expensive arbitration for a modest claim has not fulfilled their duty of care. The principle of proportionality runs through all dispute resolution advice.

APC-style Q&As

Q (Level 1)What is the key difference between mediation and adjudication?

Mediation is a voluntary, non-binding process where the parties reach their own settlement with the help of a neutral facilitator. Adjudication is a statutory procedure in which an adjudicator imposes a decision that is temporarily binding on both parties.

Q (Level 1)How long does an adjudicator have to reach a decision?

An adjudicator must reach a decision within 28 days of the referral notice. This can be extended by 14 days with the referring party's consent, or by longer if both parties agree.

Q (Level 2)A client is in a payment dispute with a contractor. The amount at stake is £95,000 and the commercial relationship is important to the client. Which technique would you recommend, and why?

I would recommend attempting mediation first. With £95,000 at stake and an ongoing commercial relationship to protect, a mediated settlement is likely to be faster, cheaper and less damaging than adjudication. The RICS Dispute Resolution Service or CEDR could appoint a suitable mediator. If mediation fails, adjudication would be the appropriate next step — it is fast, relatively inexpensive and produces a temporarily binding decision. Arbitration would not be proportionate for this sum unless the contract specifically requires it.

Q (Level 2)Why might a party prefer arbitration over litigation for a large construction dispute?

Arbitration offers several advantages over litigation: it is private (protecting commercially sensitive information), the arbitrator can be selected for specialist expertise, the award is internationally enforceable under the New York Convention, and the process is more flexible than court procedure. Parties can also agree on procedural rules and hearing dates, which can reduce delay. The main disadvantages are cost and the limited grounds for appeal.

Q (Level 3)A developer has obtained an adjudicator's decision in its favour requiring a sub-contractor to pay £250,000. The sub-contractor refuses to pay. What are the developer's options?

(example) I would advise the developer that it can apply to the court for summary judgment to enforce the adjudicator's decision. Courts enforce adjudication decisions without examining their merits in all but the most exceptional circumstances — where there has been a serious breach of natural justice or the adjudicator clearly had no jurisdiction. I would recommend instructing solicitors to issue enforcement proceedings promptly, as this is usually swift and the sub-contractor would face adverse costs if it continues to resist without a legitimate jurisdictional challenge. If the sub-contractor has a genuine dispute about the underlying claim, it retains the right to pursue a final determination through arbitration or litigation after complying with the decision.