Generally, adjudication can be understood as the process of settling a claim or a legal case through the justice system. It is the process by which the issue of the opposing parties is reviewed by the Adjudicator and the final award is delivered that actually determines the rights and obligations of the involved parties, and subsequent course of action as per the jurisdiction mentioned in the Contract.
In simple terms, adjudication is a sanctioned procedure of resolving any dispute by a third party. The final award is awarded after an extensive review of the legal reasoning, evidence and hearing put forward by the opposing parties, this award by the Adjudicator is legally binding. The Adjudicator is an authoritative impartial third party who acquires its power from mutual agreement of the Parties. The main benefit that this method of dispute resolution offers is the efficient delivery of fast and practical solutions to the disputes.
Some of the features of adjudication can be listed as follows:
- The entire process of adjudication is adversarial and involuntary.
- The involved parties are free to select. the adjudicator according to their requirements.
- The adjudicators have the sole right to act as an investigator but they do not have any jurisdiction beyond that stated in the contract.
- The proceedings are not lengthy and time-consuming. In fact, the entire process is completed within a short period of time.