If a settlement agreement does not include provisions for adjudication, can a dispute still be decided that way?

In London Eco Homes Limited v Raise Now Ealing Ltd [2025] EWHC 1505, the Court considered this question and provided some interesting analysis on the scope of settlement agreements and how they relate to the original construction contract.

What happened?

Raise Now hired Eco Homes as the main contractor for a construction project in West Ealing. The contract contained an express adjudication clause for resolving disputes.

A dispute arose and was resolved through a settlement agreement (with no adjudication clause).

When Raise Now failed to comply with the settlement agreement, Eco Homes referred the dispute to adjudication, and won. Eco Homes then applied for summary judgment to enforce the Adjudicator’s award.

Raise Now challenged the Adjudicator’s jurisdiction. It argued that the Settlement Agreement was a standalone contract, replacing the original contract. Since the settlement agreement had no adjudication provisions, Raise Now argued that disputes could not be decided this way.

What did the Court decide?

• There was a clear commercial link between the two documents, making it impossible to treat the settlement agreement as self‑standing.
• The adjudication rights in the original contract survived into the settlement agreement.
• The Adjudicator therefore had jurisdiction to decide the dispute arising under the settlement agreement.

What can we learn from this?

This case shows that an unpaid party may use adjudication to recover payments owed under a settlement agreement, if that agreement varies (rather than replaces) the original construction contract, and the original construction contract includes adjudication rights.

It’s another lesson to draft precisely if you want to exclude (or include) adjudication as a dispute resolution forum. It’s easy to overlook these details in the rush to settle a dispute, but failing to address them can lead to further litigation and costs.

To download the bulletin, please do so here.

Do you need help drafting, negotiating and interpreting your construction contracts? Our team has hands-on experience and are happy to help. Please reach out to us for clear and actionable advice.

This article contains information of general interest about current legal issues, but does not provide legal advice. It is prepared for the general information of our clients and other interested parties. This article should not be relied upon in any specific situation without appropriate legal advice. If you require legal advice on any of the issues raised in this article, please contact one of our specialist construction lawyers.

© Hawkswell Kilvington Limited 2025

Featured Lawyers:

Gary Ashton | Partner

Shauna O’Neil | Solicitor