When may a party set off a contractual cross-claim against an adjudicator's monetary award?
The starting point is compliance with the adjudicator's operative order. A party cannot ordinarily avoid payment by raising a cross-claim that was available in the adjudication or by relying on a termination or set-off clause in a manner that defeats the decision.
Pay the sum ordered unless the decision itself, a compatible express provision or another binding decision supplies a clear set-off right
Whether set-off is available depends on the precise adjudication decision, the contract wording, the nature and timing of the cross-claim, and whether the proposed deduction would contradict what the adjudicator decided. Earlier authority allowed an express preserved right of set-off, but later appellate authority required immediate payment where reliance on a termination provision would defeat adjudication. A second binding adjudication decision may sometimes be set against the first. Do not issue a fresh notice or invoke a general clause without checking whether that course is legally compatible with the award.
| Issue | Position |
|---|---|
| Decision orders payment without qualification | Immediate payment is the starting point |
| Cross-claim decided or rejected | Cannot be reintroduced as set-off |
| Express compatible set-off right | May apply on its wording |
| Termination clause defeats payment | Likely enforcement risk |
| Two binding monetary decisions | Netting may be available |
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