How does statutory adjudication apply where a contract includes both covered and excluded operations?
A project can contain both statutory construction operations and excluded operations. The classification is made by reference to the contracted operations and the wording of sections 104 and 105, not by applying one label to the whole site without analysis.
Separate the operations and values at referral stage; the statutory regime applies only to the covered part of a mixed contract
Section 104(5) addresses a contract that relates partly to construction operations and partly to other matters: the statutory regime applies only so far as the agreement concerns the construction operations. Section 105 then defines covered and excluded operations. Analyse the actual work package, the site activity, the purpose of plant or machinery, associated steelwork or pipework, off-site fabrication, delivery and erection separately. If an adjudicator decides a combined claim without distinguishing the statutory and non-statutory parts, the whole decision may face enforcement difficulty where the invalid part cannot be severed.
| Issue | Position |
|---|---|
| Covered operation | Statutory adjudication applies |
| Excluded operation | Requires contractual jurisdiction or another route |
| Mixed contract | Apply statute only to covered part |
| Composite valuation | Separate evidence and amounts |
| Inseparable combined decision | Enforcement risk |
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