Can I adjudicate if there’s no formal contract in place?

Yes, you can often adjudicate even without a signed formal contract, as long as there is an agreement (even an oral or implied one) for construction work. The key is whether there’s a “construction contract” as defined by law. Under the Construction Act, a construction contract is basically an agreement to carry out (or arrange) construction operations and it doesn’t strictly have to be in writing. Originally, the 1996 Act required contracts to be in writing for adjudication rights to apply, but that rule was abolished in 2011. Now, oral and partly oral contracts are covered too.

In practical terms, if you did work for someone (say you, a specialist subcontractor, performed works on site) and you both clearly intended to be bound (even if only through a handshake or a work order email), then for adjudication purposes, you likely have a contract. So even without a signed document, the law implies the right to adjudicate into your arrangement as long as it fits the definition of construction work.

Scenarios where adjudication can still apply

All verbal agreement

You agreed by phone or on-site conversation to do some extra work for a contractor, but nothing was written down. If a dispute arises (e.g. non-payment for that work), you can still adjudicate. The challenge in such cases is proving the terms of the oral contract (what price, scope, etc.), but the right to adjudicate is there. Courts have even seen parties spend significant money litigating whether an arrangement was a construction contract, concluding it was. Proving that even unexpected arrangements can be deemed contracts giving rise to adjudication.

Letters of intent or unsigned contracts

Maybe you started work on the basis of a letter of intent or a draft contract that was never signed. If it walks and talks like a contract (offer, acceptance, work done for payment), it likely is one. You don’t need the formality of signatures to have adjudication rights.

Implied contracts through conduct

Perhaps there’s no clear moment of agreement, but both parties behaved as if a contract existed (you did work, they gave instructions, etc.). An implied contract can still count as a construction contract. For example, a specialist subcontractor continues to work after a previous contract expired, and the parties never formally renewed. The ongoing work might be under an implied new contract on similar terms.

Important points and exceptions

Establishing the contract’s existence

While you don’t need a written contract, you do need to convince an adjudicator (and possibly a court) that some contract existed between the parties. If the other side flat out denies any agreement, the adjudicator will consider evidence of your arrangement (emails, purchase orders, site instructions, payment schedules, etc.). It can become a “he said, she said” situation about what was agreed. So, be prepared to show that something was agreed upon, even if not formally penned down.

Residential occupier exception

The Construction Act’s adjudication right does not apply to a contract with a “residential occupier” (a homeowner living in the premises) unless adjudication is expressly written into the contract. This is a carve-out: if you built an extension for Mr. Smith’s own house and there was no contract clause for adjudication, you might not have the statutory right to adjudicate. Many contractors still include adjudication in domestic contracts, but if not, you can’t force it under the Act. This exception is mainly aimed at protecting lay homeowners from being dragged into adjudication unexpectedly.

Other exclusions

There are a few niche exclusions (like certain engineering on-site for power generation, drilling for oil, etc.), but for most typical building or renovation work, those won’t apply.

Summary

No written contract? Usually no problem for adjudication. The law since 2011 permits adjudication on oral contracts. The key is proving that a contract (oral/implied) for construction work was in place. If you’ve done work and not been paid, don’t be deterred by the absence of a signed paper. You can still pursue adjudication to get a decision on the dispute. Just be ready to provide evidence of the scope of work and terms agreed, since without a document, clarity of the agreement may be an issue to resolve as part of the adjudication.

If you’re unsure whether your arrangement qualifies as a construction contract, talk to Breadcrumb Group with Adjudicate and The Contract Coach to support you. We can quickly assess your position and advise on whether you have a route to adjudication even without a signed document. Get in touch with our team today.