The Technology and Construction Court (TCC) confirmed on 20 January 2026 that an assignee to a construction contract may refer disputes to adjudication, subject to the terms of the contract, and that an adjudicator’s decision is therefore enforceable in such circumstances.
Background
In the case of Paragon Group Limited (Paragon) v FK Facades Limited (FK), the building contract was entered into on 17 October 2018. The JCT Minor Works Building Contract 2016, as amended by a schedule of amendments and the Scheme for Construction Contracts (the Scheme) applied. The Scheme sets out an adjudication procedure where there is none.
The building contract was between Office Depot International (UK) Limited (ODI) and FK Facades Limited (FK). The building contract was subsequently assigned from ODI to OT Group Ltd (OTG) and then again from OTG to Paragon in 2024. There is no dispute to the validity of the assignments.
The issue before the court was whether Paragon was legally entitled to refer its claim as assignee against FK to adjudication.
Judgment
The judge confirmed that “…the use of the word “party in the Scheme…did not have a conscious intention to differentiate between the position of an original contracting party and that of an assignee when referring to a “party to a construction contract”…”. Since the building contract contained provisions allowing assignment by ODI, the right to adjudicate passed to Paragon as the assignee. It is important to note that this did not mean that Paragon became a party to the building contract.
Commentary
Surprisingly, given the prominence of adjudication in the construction industry, no direct authority has addressed whether assignees can refer to adjudication prior to this case.
The judgment therefore brings welcome clarity for any party who has the benefit of an assignment of a construction contract. This is especially so where the Scheme applies.
Original Judgment
Please find the full judgment of Paragon Group Limited v FK Facades Limited here.
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