Adjudication

2.Main Content

This page has the following information about Adjudication:
What it is
When it is used
How it works
Cost

What it is
Adjudication is a lot like Arbitration, but it is more informal. In arbitration, the arbitrator's decision is legally binding on both sides, so it is not possible to go to court if you are unhappy with the decision. In adjudication, the adjudicator’s decision is not binding on the consumer in the same way, though it is often binding on the company.

Like arbitration, adjudication involves an independent third party – the adjudicator – considering the claims of both sides and making a decision. This is usually done on paper. Both sides send in written details of their argument, with copies of any letters, reports or other evidence. The adjudicator then makes a decision based on this information, and on what is generally considered to be good practice in the business concerned. The adjudicator is usually an expert in the subject matter in dispute.
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When it is used
You are most likely to come across adjudication is dispute resolution schemes run by trade associations to deal with consumer complaints about their members, or in schemes set up to deal with common disputes about service providers, but which are not about large sums of money.

You may also find that the term ‘adjudication’ is used to describe any process where an independent third party makes a decision about the best way to resolve a dispute. In this sense, ombudsmen, arbitrators and judges are all types of adjudicators.

You can find more details of some common UK schemes which use adjudication on this site:

CISAS uses adjudication to resolve disputes between consumers and some telephone and internet providers.

The Furniture Ombudsman (Qualitas) tries to resolve disputes about furniture, kitchens and bathrooms using Conciliation. Where this fails, you can ask for an adjudicator to make a decision.

The Postal Redress Service resolves disputes between consumers and postal services.

There are three government-approved adjudication schemes to resolve Tenancy deposit disputes between landlords and tenants at the end of tenancies.

SquareTrade is an on-line adjudication scheme for disputes arising from some internet shopping sites such as Ebay.

IDRS is an independent adjudication service run by the Chartered Institute of Arbitrators, which runs adjudication schemes for a number of businesses and trade associations. For example, IDRS runs CISAS and POSTRS, and provides the dispute resolution for two of the tenancy deposit schemes.
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How it works
Each scheme is slightly different, but there is a common procedure which will be followed in most cases.

Usually you are expected to first try to resolve your dispute directly with the company you are complaining about. You can get advice and infromation about dealing with consumer disputes from Consumerdirect.

Resolving your dispute may be impossible for a number of reasons:

The company may not agree with your complaint
The company may send you a letter making an offer that you are not happy with
The company may fail to respond to your complaint within a reasonable time

At this stage you can apply to the relevant adjudication scheme. Some schemes require you to have a ‘deadlock letter’ from the company stating their final offer. Some require you to have tried to pursue your complaint for a minimum of 8 or 12 weeks. You can check the details with each scheme.

In adjudication schemes you need to provide the adjudicator with written details of your complaint. They will not usually talk to you about the problem, investigate the issues, or ask for more evidence from you or the company. This means that you need to fill in the application form carefully, giving all the relevant information, and make sure you send copies of all the letters and supporting evidence that you have. Adjudication schemes may have staff who will talk to you on the phone and help you do this. You could also get help from your local CAB or advice agency.

Once you have made your complaint, it will usually be sent to the company, and they will be invited to respond with their side of the story. This will also be in writing. You will often be given a chance to respond to what the company has said – though you can’t raise any new issues at this stage.

An adjudicator will then be appointed, and all the papers sent to her/him to read and to make a decision. If the adjudicator finds in your favour, s/he will state what action the company should take to put things right. This may include compensation.

If you accept the decision, the company is required to do what adjudicator has said. This is because most schemes are either run by trade associations, or companies are required by law to be a member of an approved adjudication scheme. Compliance with the adjudicator’s decision is a requirement of membership. If you don’t accept the decision, you are free to take the case to court if you want to.
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Cost
Most schemes are free to consumers.
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September 2008