What is the difference between adjudication and arbitration?

While the actual processes can be similar, arbitration involves the detailed hearing of evidence and witnesses. Arbitration is binding and it can be a much longer and more formal process.

Adjudication involves the quick resolution of disputes between parties where an adjudicator hears the outline of both sides of the argument and makes a fast decision within 28 days. Often the dispute is decided on paper only. This method allows projects to advance in a much more timely fashion. Adjudication decisions are only temporarily binding and can be displaced by litigation or arbitration. In practice the parties very often accept the adjudicator’s decision and don’t seek to litigate it.