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Adjudication

FIDIC / Legal Reference: FIDIC DAB process / Statutory adjudication (UK)

A rapid interim dispute resolution procedure in which a neutral adjudicator makes a binding decision within a short timescale — typically 28 to 45 days. The adjudicator’s decision is binding and enforceable immediately — even if the underlying dispute is to be resolved finally in arbitration or court.

What it means in practice

Adjudication is designed to provide quick, interim resolution that keeps cash flowing on a project — preventing one party from using a dispute as a pretext to withhold payment. This ‘pay now, argue later’ principle is the cornerstone of the adjudication regime.

In the UAE, there is no statutory adjudication equivalent to the UK model. FIDIC’s DAB/DAAB provisions are the primary contractual mechanism for interim binding decisions. DIAC’s 2022 Rules introduced an expedited arbitration procedure that can be completed in approximately 45 days for eligible disputes.

Where disputes arise

The most common challenge to an adjudicator’s decision is jurisdictional — arguing that the dispute was not properly referred, or that the adjudicator did not have authority to determine the specific issue.

UAE Context

UAE construction contracts increasingly incorporate adjudication-like provisions, often as an intermediate step between the Engineer’s determination and formal arbitration. DIAC’s expedited procedure is filling some of this gap in the UAE market.

Related terms

e-Basel advises on FIDIC DAB proceedings and represents parties in expedited dispute resolution processes across the UAE.

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