Construction Adjudication in Cyprus: The ETEK “Critique Procedure”

In the construction industry, disputes are inevitable. Whether they arise during the performance of works, following suspension or abandonment, or after contractual termination, conflicts between employers and contractors require efficient and structured mechanisms for resolution. In Cyprus, this role is fulfilled by construction adjudication, referred to in local practice as the “κριτική διαδικασία” (Critique Procedure) established under the Regulations of the Cyprus Scientific and Technical Chamber (ETEK).

Adjudication is designed to deliver swift, binding, and pragmatic outcomes. While not always final in the same sense as arbitration or litigation, adjudication ensures that projects continue with minimal disruption by providing an enforceable interim decision within strict time limits.

Scope of Adjudication

Under Article 38 of standard construction contracts, adjudication may be invoked whenever a dispute or difference arises between the employer and the contractor. The scope is deliberately broad, covering:

• Interpretation of the contract.

• Issues relating to the execution of works, including certifications and alleged withholdings by the employer or the engineer.

• Adjustments to the contract sum under Article 33(6)(c).

• Rights and responsibilities of the parties under Articles 28, 29, 35, and 36.

• Allegations of unreasonable refusals or objections by either party.

Once a dispute is identified, the matter is referred to adjudication and, if necessary, may subsequently proceed to arbitration.

Commencement of Proceedings

Adjudication begins with a Notice of Referral under Regulation 2, in which the claimant sets out:

• The nature and description of the dispute.

• All parties involved.

• The time and place where the dispute arose.

• The relief sought.

• The names and addresses of the contractual parties

This written notice is the formal trigger for the adjudication process under Article 38(1).

Appointment of the Adjudicator

The parties are encouraged to appoint an adjudicator jointly, in line with Regulations 3 and 26. If they cannot agree within seven days, each submits a list of three candidates. A common nominee may be selected, or, in the absence of consensus, the adjudicator is chosen by drawing lots.

If one party refuses to cooperate, the other may proceed unilaterally. Under the rules, failure to nominate an adjudicator amounts to conclusive acceptance of the opponent’s choice, allowing a unilateral appointment.

Jurisdiction and Powers of the Adjudicator

Once appointed, the adjudicator has extensive powers under Regulation 13, including:

• Requiring parties to submit documents and written statements.

• Determining the language of the proceedings and ordering translations.

• Conducting hearings, questioning parties, and arranging site inspections.

• Appointing experts to advise on legal, financial, or technical matters.

• Imposing timetables and evidential limits.

This flexibility allows the adjudicator to tailor the procedure to the specific needs of the dispute, ensuring both speed and fairness.

Compliance and Enforcement

Parties are obliged to comply with the adjudicator’s directions. Regulation 15 empowers the adjudicator to proceed in the absence of a party, to draw adverse inferences, and to render a decision based on the material available. This ensures that adjudication cannot be frustrated by delay or obstruction.

Timelines and Decision

A decision must be issued within 42 days of referral, extendable to 56 days with the claimant’s consent, in accordance with Regulation 19. This strict timetable reflects the essence of adjudication: swift justice in a sector where time is often critical.

The adjudicator’s decision may:

• Reconsider certificates or determinations issued under the contract.

• Order payments due under the contract and set deadlines for compliance.

• Award interest as provided by the contract.

Under Regulation 23, the decision is binding and enforceable, and the adjudicator may order immediate compliance, including specific performance. Although such decisions may later be reviewed in arbitration or court, they remain binding until set aside.

Significance for the Industry

Adjudication under the ETEK Regulations aligns Cyprus with international best practice, echoing the UK model established under the Housing Grants, Construction and Regeneration Act 1996. It ensures that disputes are addressed swiftly without paralysing ongoing projects, while preserving parties’ rights to pursue final determination through arbitration or litigation.

Conclusion

The ETEK adjudication procedure is a cornerstone of construction dispute resolution in Cyprus. By combining speed, expertise, and binding effect, it provides an essential safeguard for employers, contractors, and the wider construction industry. Understanding the process — from notice, appointment, and jurisdiction, to decision and enforcement — is critical for all stakeholders.

For those engaged in construction projects in Cyprus, adjudication is not simply an option; it is a vital mechanism to resolve disputes efficiently, maintain project momentum, and uphold the balance of rights and obligations under the contract.