Poor Contract Administration Is Costing the Industry Millions
The UK’s Dispute Problem Isn’t Legal. It’s Commercial.
Record adjudication referrals reveal that poor contract administration—not legal complexity—is driving project disputes across the industry.
Executive Summary
The UK construction industry recorded 2,264 adjudication referrals in 2024—the highest number since statutory adjudication was introduced. The overwhelming majority stem from failures in commercial management: inadequate contract administration, missed notices, ineffective change management and poor project controls.
Projects rarely end in dispute because contracts are poorly written. They end in dispute because contracts are poorly administered.
The Numbers
What the Data Tells Us
Construction disputes rarely begin in adjudication. They begin months earlier through missed notices, late compensation event submissions, incomplete records, poor change management and weak project controls. These are failures of commercial management rather than legal interpretation.
Why This Matters
Commercial positions weaken over time.
Evidence is lost and entitlement becomes harder to defend.
Relationships deteriorate.
Recovery becomes increasingly expensive.
How Valestra Responds
Contract Guard: Identifies contractual obligations, notice requirements and commercial risk before work begins.
Change Command: Captures, notifies, assesses and values every compensation event and variation before entitlement is lost.
Controls Build: Implements robust commercial procedures, governance and project controls during mobilisation.
Key Takeaway
Construction disputes are rarely inevitable. Most are the consequence of preventable commercial failures. Organisations that invest early in contract administration, commercial governance and project controls consistently reduce risk, protect entitlement and improve project performance.
Source
2024 Construction Adjudication in the United Kingdom: Tracing Trends and Guiding Reform King’s College London Centre of Construction Law & Dispute Resolution
The Adjudication Society
November 2024