It implies a hearing by a court, after notice, of legal evidence on the factual issue(s) involved; it may be equivalent to a determination.
[3] Each state and territory has enacted security of payment legislation which provide for adjudication of progress construction claims, starting with New South Wales in 1999.
[4] However, in all jurisdictions, adjudications are interim pending final resolution of the dispute under the relevant terms of the contract.
The act covers construction, and related supply of goods and services, contracts, whether written or verbal.
This process was designed to ensure cash flow to businesses in the building industry, without parties getting tied up in lengthy and expensive litigation or arbitration.
[13] For there to be a dispute capable of being addressed by adjudication, "it must be clear that a point has emerged from the process of discussion or negotiation that has ended and that there is something which needs to be decided".
[12] In the case of Aspect Contracts (Asbestos) Limited (Respondent) v Higgins Construction Plc (Appellant), heard in 2015, the Supreme Court of England and Wales argued that the wording would have been clearer if had said "unless and until" instead of merely "until".
[15] The term "smash and grab" claim refers to the practice of submitting a large interim payment application at the end of the construction phase of a project, but before completion of the final account,[16] and the term "'smash and grab' adjudication" has been used in relation to several adjudication decisions regarding liability for interim payment of such claims.
[19] In relation to a 2012 case, Herbosh-Kiere Marine Contractors Ltd v Dover Harbour Board,[20] Matt Molloy notes that there can be a distinction between "statutory adjudication", applying the processes set out in legislation, and "contractual adjudication", where a complainant exercises a right provided for in their contract.
[21] In this case, which related to a wreck-removal agreement requiring the contractor to remove the remains of a boat sunk to stop torpedoes being fired into Dover Harbour during World War I, the court determined that the adjudicator had exceeded his jurisdiction and the adjudicator's ruling was therefore not upheld.[20]: para.
35 In the same case, reference is made to a 2006 Court of Appeal ruling, Carillion Construction v Devonport Royal Dockyard, in which Lord Justice Chadwick reminded litigants that in the UK context, "the majority of adjudicators are not chosen for their expertise as lawyers.
In the United States, adjudication is the process directly following a background investigation where the investigation results are reviewed to determine whether a candidate should be awarded a security clearance, or is suitable for a public trust position, which is a job that requires a very knowledgeable and responsible person, often related to national security.
Arizona state law defines a dually adjudicated child as "a child who is found to be dependent or temporarily subject to court jurisdiction pending an adjudication of a dependency petition and who is alleged or found to have committed a delinquent or incorrigible act".