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Construction projects are complex. Multiple parties, tight deadlines, evolving specifications, and significant sums of money mean disputes are a common reality. Whether you’re a developer dealing with defective work, a contractor chasing unpaid invoices, or a homeowner whose builder has walked off site, the right legal support can make the difference between a dispute dragging on for months and getting it resolved quickly.
At Darwin Gray, our construction dispute lawyers act for developers, contractors, subcontractors, housing associations, property owners, and construction professionals across England and Wales. We handle everything from straightforward payment disputes to complex multi-party claims, and we’re set up to move fast when we need to, particularly in adjudication where you’re working to a 28-day timetable.
Get a free, no-obligation chat with our disputes team, call us on 02920 829 100 or use our Contact us form.
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Construction law operates under its own legal regime, separate from standard commercial litigation. The Housing Grants, Construction and Regeneration Act 1996 (commonly called the Construction Act) gives parties to construction contracts specific statutory rights around payment and dispute resolution that don’t apply to other types of commercial contract. If you don’t know these rules inside out, you can lose money or miss critical deadlines without even realising it.
For example, a contractor who doesn’t issue a valid payment notice within the required timeframe may lose the right to be paid the full amount claimed. A client who fails to serve a pay less notice can end up paying the contractor’s “notified sum” in full, even if they believe the work is defective. And either party has the right to refer a dispute to adjudication at any time, triggering a process that typically reaches a binding decision within just 28 days.
These aren’t theoretical risks. They come up on commercial construction projects every day, and they catch people out. Our specialist construction lawyers know this area of law in detail, and we make sure our clients don’t get caught on the wrong side of a technicality.
We act for businesses and individuals on construction disputes of all sizes.
Want to talk it through? Contact us for a free, no-obligation chat call us on 02920 829 100 or use our Contact us form.
Adjudication is the go-to dispute resolution method in the construction industry. Under the Construction Act, any party to a construction contract can refer a dispute to an independent adjudicator at any time. The adjudicator’s decision is typically reached within 28 days and is binding on an interim basis, meaning it must be complied with immediately (the “pay now, argue later” principle), even if either party later challenges it through litigation or arbitration.
The speed of adjudication is both its strength and its challenge. You need to be ready to present a strong case quickly, and you need to respond to claims against you within very tight timescales. We handle both sides, acting for referring parties who need to pursue claims and for responding parties who need to defend them. We also handle adjudication enforcement proceedings in the Technology and Construction Court (TCC), where a party refuses to comply with an adjudicator’s decision.
Payment disputes are the single most common type of construction dispute. The Construction Act (as amended in 2011) sets out a detailed payment regime: the right to interim, periodic or stage payments, the requirement to issue payment notices and pay less notices within prescribed timescales, the right to suspend work for non-payment, and the prohibition on “pay when paid” clauses.
Getting these payment mechanisms right is critical. We advise on drafting and responding to payment applications, payment notices, and pay less notices. We pursue claims for unpaid work and defend against claims where the work doesn’t justify the amount claimed. We also handle “smash and grab” adjudications, where a party claims the full notified sum because the other side failed to serve a valid payment notice or pay less notice on time.
Whether it’s cracking foundations, water ingress, poor workmanship, or a complete failure to build to specification, defective work claims are a major source of construction disputes. We act for clients bringing claims against contractors, subcontractors, architects, and engineers for defective work, and for those defending against such claims.
These cases often involve complex technical evidence, and we work closely with independent building surveyors, structural engineers, and other experts to build (or challenge) the evidence. We’ll advise on your contractual position, identify who is liable, quantify the loss, and pursue or defend the claim through negotiation, adjudication, mediation, or court proceedings.
We also advise on latent defect claims, where problems only emerge years after the work was completed. Limitation periods in construction are complicated: six years for breach of contract, but potentially up to 12 years for claims under deed, with additional extensions for latent defects that couldn’t reasonably have been discovered. Getting specialist advice on limitation early is important.
When a construction project runs late, the financial consequences can be significant: liquidated damages claims, prolongation costs, loss of revenue from delayed occupation or use, and knock-on effects for subcontractors and supply chains. Delay disputes often involve complex factual analysis and the use of programme analysis tools.
We advise contractors and employers on delay and disruption claims, including extension of time claims, loss and expense claims, liquidated damages defences, and concurrent delay arguments. We’re used to working with delay analysts and quantity surveyors to build and test delay claims.
When an architect designs a building that doesn’t comply with regulations, a structural engineer’s calculations are wrong, or a project manager fails to manage the works properly, the consequences can be severe. We handle professional negligence claims against construction professionals including architects, engineers, surveyors, and project managers.
These claims require specialist knowledge of both the professional’s duties and the technical standards that apply. We’ll assess whether the professional fell below the standard of reasonable competence, what loss has been caused, and the most effective route to recovery.
View more on professional negligence
Many construction and engineering disputes start with a disagreement about what the contract actually requires. Common issues include the scope of work and variations, interpretation of JCT, NEC, FIDIC and other standard form contracts, letters of intent and their enforceability, performance bonds and parent company guarantees, and retention provisions. We advise on all types of construction contract disputes, whether you’re operating under a formal standard form contract or an informal arrangement that’s been cobbled together from emails and verbal agreements.
The Building Safety Act 2022 introduced significant new obligations for the construction industry, particularly for higher-risk buildings. It created new routes for building owners and leaseholders to pursue remediation claims for defective work, and extended limitation periods for certain building safety defects. If you’re dealing with cladding defects, fire safety issues, or remediation disputes, we can advise on your position under both the Building Safety Act and existing contract and tort law.
Performance bonds, advance payment bonds, parent company guarantees, and collateral warranties all create additional layers of liability in construction projects. Disputes can arise about whether a bond can be called, whether a guarantee has been triggered, or whether a collateral warranty gives a third party the right to claim. We advise on both enforcing and defending against claims under these instruments.
One of the first things we’ll discuss with you is how best to resolve your dispute. Construction law offers a wider range of dispute resolution options than most other areas of commercial law, and choosing the right one can save significant time and cost.
Adjudication
The fastest route. A decision typically within 28 days, binding on an interim basis. Particularly effective for payment disputes and cases where cash flow is critical. The right to adjudicate exists under the Construction Act for most construction contracts, regardless of what the contract itself says about dispute resolution.
Mediation
A voluntary process where an independent mediator helps both parties reach a settlement. Often highly effective in construction disputes, particularly where there’s a commercial relationship worth preserving or where the cost of formal proceedings would be disproportionate to the sums involved. We can recommend experienced construction mediators.
Arbitration
A private, confidential process where an independent arbitrator makes a binding final decision. Often used for international construction disputes or where the contract specifies arbitration as the final dispute resolution method. Arbitration decisions are enforceable internationally under the New York Convention.
Litigation
Court proceedings, typically in the Technology and Construction Court (TCC), which is a specialist division of the High Court with judges experienced in construction disputes. Litigation produces a final, enforceable judgment and is sometimes the only option where adjudication or mediation hasn’t resolved the dispute.
Expert Determination
A specialist expert (such as a quantity surveyor or engineer) makes a binding decision on a specific technical issue. Often used for valuation disputes or technical disagreements about the quality of work.
Negotiation
The cheapest and fastest option when it works. We often achieve resolution through direct negotiation, particularly where both parties are commercially minded and the dispute is more about money than principle.
We act across the full range of construction disputes for both commercial and residential projects:
Commercial construction disputes: Large-scale development projects, office and retail builds, infrastructure projects, and public sector construction, including disputes arising under JCT Design and Build, NEC4, and FIDIC contracts.
Residential development disputes: Housebuilder claims, developer disputes with main contractors, housing association repair and maintenance claims, and disputes arising from residential developments.
Homeowner building disputes: Disputes with builders over extensions, renovations, loft conversions, and other home improvement works. These are often the most stressful disputes for our clients because they involve their homes, and we take particular care to provide clear, practical advice about costs and prospects before committing to a legal process.
Subcontractor disputes: Payment claims up and down the supply chain, back-to-back liability, and disputes about scope of work and variations.
Professional negligence: Claims against architects, engineers, surveyors, project managers, and other construction professionals.
Housing association and public sector: Repair and maintenance disputes, development project claims, building safety compliance, and contractor performance issues.
Construction disputes move fast, especially in adjudication where you’re working to a 28-day timetable. You need to be able to pick up the phone and speak to the solicitor handling your case. That’s exactly how we work. You’ll have direct contact with your solicitor from day one.
Construction disputes often overlap with other areas of property and commercial law. A defective build might give rise to both a construction claim and a professional negligence claim against the architect. A development dispute might involve planning issues, landlord and tenant obligations, and insurance claims alongside the core construction issue. Our property disputes team works alongside our commercial property, corporate, and insurance colleagues, so you get the full picture from one firm.
We act for employers, developers, and property owners pursuing claims against contractors. We also act for contractors and subcontractors defending claims and chasing payment. This dual perspective means we understand the arguments and tactics used by both sides, which makes our advice to you sharper.
Construction disputes can be expensive. We’ll always give you an honest assessment of the strength of your claim or defence, the likely costs, and the most proportionate way to resolve the dispute. If mediation would get you a quicker and cheaper result than adjudication, we’ll say so. If a claim isn’t worth pursuing, we’ll tell you that too.
We’re the leading commercial law firm with offices in South and North Wales offering Welsh language legal services at every level. Wales has a significant construction sector, and our ability to work fluently in Welsh is a genuine advantage for clients in the public sector, housing associations, and Welsh Government-funded projects.
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Call us or fill in our contact form. We’ll have a chat about your situation, completely free and without obligation. We’ll want to understand the basics: what type of project is involved, who the parties are, what the dispute is about, and what you want to achieve. If it’s urgent (particularly if you’re facing or considering adjudication), let us know and we’ll prioritise it.
We’ll review your construction contract, relevant correspondence, and any expert reports you have. You’ll get an honest assessment of your legal position, the strength of your claim or defence, and your options for resolution. We’ll recommend the most proportionate dispute resolution route, whether that’s negotiation, mediation, adjudication, or court proceedings, and give you a clear estimate of likely costs.
Whatever route we take, our goal is the same: to resolve your dispute as quickly and cost-effectively as possible. In adjudication, that means working to the 28-day timetable. In negotiation or mediation, it means being commercially pragmatic while protecting your interests. In court proceedings, it means building a strong case and keeping costs proportionate to the sums at stake.
Many of our construction clients come back to us regularly because they know we understand their business. Whether it’s reviewing contracts before they’re signed, advising on payment notices during a project, or stepping in when a dispute arises, we’re here for the long term.
Construction dispute costs depend heavily on the complexity of the dispute, the sums involved, and the resolution route chosen.
For adjudication, the compressed timescale means costs are concentrated into a short period. We’ll give you a realistic estimate before you commit to referring or defending a claim. For mediation and negotiation, costs are typically lower and more predictable. For court proceedings, we work on an hourly rate with regular cost updates.
In some cases, we may be able to offer staged fixed fees, particularly for straightforward adjudications or initial case assessments. We’ll also advise on whether after-the-event insurance or third-party funding might be appropriate for your case.
We’re always upfront about costs. You won’t get any surprises.
I am delighted with the service provided. The whole experience was positive and the feedback to questions was excellent. I would recommend them to my friends.
Pam Smith
Amazing service once again by the team from Darwin Gray. A professional and pragmatic approach to the task in hand. Thanks again guys keep up the great work.
Matthew
5* highly recommend this firm, very honest, listens to your needs, very friendly, guides you through every step, fantastic communications.
Patricia
A construction dispute is any disagreement arising from a construction project. That includes disputes about payment (the most common type), defective work, delays, professional negligence, contract interpretation, variations, and termination. Disputes can arise between any parties in the construction chain: employers and main contractors, main contractors and subcontractors, clients and architects, developers and engineers, or homeowners and builders. The key thing that makes construction disputes different from other commercial disputes is the special legal regime under the Construction Act, which gives parties specific statutory rights around payment and adjudication.
Construction adjudication is a statutory alternative dispute resolution process under the Housing Grants, Construction and Regeneration Act 1996. It gives any party to a construction contract the right to refer a dispute to an independent adjudicator at any time. The adjudicator typically makes a decision within 28 days, and that decision is binding on an interim basis, meaning both parties must comply with it immediately. The decision can later be challenged through litigation or arbitration, but until it is, it stands. Adjudication is particularly effective for payment disputes because it preserves cash flow while the underlying issues are resolved.
For breach of contract, the limitation period is six years from the date of the breach (or 12 years if the contract is executed as a deed). For tort claims (such as negligence), it’s six years from when the damage occurred, with an additional three years from when you discovered or should have discovered the defect (subject to a longstop of 15 years under the Limitation Act 1980). The Building Safety Act 2022 extended limitation periods for certain building safety defects to 30 years for claims brought under that Act. Limitation is one of the most complex areas of construction law, and getting it wrong means losing your right to claim entirely. We’d always recommend getting advice on limitation as early as possible.
A “smash and grab” adjudication is where a party (usually a contractor) claims the full amount of a payment application because the other party (usually the employer) failed to serve a valid payment notice or pay less notice within the required timeframe. Under the Construction Act payment regime, if you don’t challenge a payment application on time, you’re obliged to pay the full “notified sum.” These adjudications can be very effective for contractors chasing payment, but they can be devastating for employers who miss the deadline. We handle both sides.
Costs vary significantly depending on the complexity and value of the dispute and the resolution method used. Adjudication is typically the most cost-effective formal process because of the compressed 28-day timetable. Mediation costs depend on the mediator’s fees and the preparation required, but are often proportionate for mid-value disputes. Litigation in the TCC is the most expensive route and is usually reserved for higher-value or more complex cases. We’ll give you a realistic cost estimate at the outset and will always advise you if the likely costs are disproportionate to the sums at stake.
For anything beyond a very simple dispute, yes. Construction law has its own statutory regime (the Construction Act), its own specialist court (the TCC), its own standard form contracts (JCT, NEC, FIDIC), and its own dispute resolution processes (adjudication). A general commercial litigator who doesn’t handle construction work regularly is likely to miss important procedural requirements, particularly around payment notices and adjudication timescales. The stakes are often high, and the timescales are often tight. Professional bodies such as the Society of Construction Law and the Technology and Construction Solicitors’ Association (TeCSA) promote best practice and education in this specialist field.
The Technology and Construction Court (TCC) is a specialist division of the High Court that handles construction, engineering, and technology disputes. TCC judges have specific expertise in these areas, which means cases are typically dealt with more efficiently than in the general courts. The TCC handles construction claims of all sizes, adjudication enforcement proceedings, and applications for interim relief such as injunctions. There are TCC courts in London and regional centres across England and Wales.
Yes, under Section 112 of the Construction Act (as amended), you have the right to suspend performance if you haven’t been paid the amount due by the final date for payment. You must give at least seven days’ notice of your intention to suspend, specifying the ground(s) on which you’re suspending. If you suspend properly, you’re entitled to an extension of time for the period of suspension and can recover reasonable costs incurred as a result. Getting the notice procedure right is essential, because suspending without proper notice can amount to a repudiatory breach of contract, giving the other side the right to terminate.
Since the 2011 amendments to the Construction Act, the statutory payment and adjudication provisions apply to all construction contracts, including oral contracts. If your contract doesn’t include compliant payment or adjudication provisions (or if there’s no written contract at all), the Scheme for Construction Contracts automatically applies, imposing the statutory regime. This can actually work in your favour, because the Scheme provides a clear framework for payment and dispute resolution. But it also means you need to be aware of the statutory timescales even if you’ve been operating on an informal, handshake basis.
Act immediately. You typically have 14 days from receiving the Referral Notice to submit your Response. That’s not long, especially for a complex dispute. Call us straight away and we’ll get to work on your defence. The most important thing is not to ignore it, because an adjudicator’s decision is binding and enforceable, even if you didn’t participate.
Yes, and most are. Negotiation, mediation, and adjudication all take place outside the court system (though adjudication decisions can be enforced through the TCC). Even where court proceedings have been issued, cases often settle before trial. We always explore settlement options first, because court proceedings are expensive and time-consuming, and a negotiated outcome often serves both parties better than a judge’s decision.
Our construction dispute lawyers are based at our Cardiff and Bangor offices, but we act for clients on projects right across England and Wales.
a: 9 Cathedral Road, Cardiff, CF11 9HA
a: Unit F12, InTec, Ffordd y Parc, Parc Menai, Bangor, LL57 4FG
Construction disputes are often managed remotely, particularly adjudication work where the tight timescale demands speed over geography. We’re comfortable handling complex disputes entirely by phone, email, and video call.
If you’re dealing with a construction dispute, or want advice on how to avoid one, contact us for a free, no-obligation chat. Whether it’s an urgent adjudication or a simmering disagreement you’d like to resolve before it escalates, we can help.
Call us on 029 2082 9100 or fill in our contact form and we’ll get back to you.
To speak to one of our experts today, please contact us on 02920 829 100 or by using our Contact Us form for a free initial chat to see how we can help.
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