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NEC4 Dispute Resolution Service Contract (DRSC)

The NEC4 Dispute Resolution Service Contract (DRSC) is the form used to appoint the person who will resolve or help avoid a dispute on an NEC4 contract: an Adjudicator, or a member of a Dispute Avoidance Board. It replaced the NEC3 Adjudicator's Contract, and is separate from the contract under dispute.

Think of it as an appointment form that sits beside the main contract. The dispute procedure itself isn't in it, because that lives in the main contract's dispute Option. It is a short document among the NEC contract types, published in June 2017 with the rest of the NEC4 suite.

Option in your main contractWhen it is usedWho gets appointed under the DRSC
W1When the Construction Act doesn't applyThe Adjudicator, under W1.2(1)
W2When the Construction Act appliesThe Adjudicator, under W2.2(3)
W3Only when the Construction Act doesn't applyDispute Avoidance Board members

Those two clause references are as they appear in the NEC4 subcontracts. Short forms hold the equivalent elsewhere, so read your own contract.

What each appointee does

  • Adjudicator. Decides a dispute referred after any required earlier steps, such as a referral to Senior Representatives. The decision binds until revised by a tribunal or by agreement.
  • Dispute Avoidance Board member. Part of a board of one or three people who visit at set intervals, keep up with progress and make non-binding recommendations on potential disputes. The aim is to deal with disagreements while they're small.

When to do it

ApproachWhat it meansTrade-off
Name someone in the Contract DataAgree the person before signing, and sign the DRSC earlyCheck availability and conflicts now, and a retainer may be needed
Name a nominating bodyA body identified in the Contract Data appoints when neededNo up-front work, but you don't control who you get
Dispute Avoidance BoardAppoint at the start, because it works by following the projectFees run throughout the contract, not only when a dispute starts

Look at the Contract Data as soon as the contract starts. If it names no one and no nominating body, you have a gap to deal with.

Practical checklist

  1. Confirm which W Option applies. This often depends on whether the Construction Act applies to your work.
  2. Check that the person has the relevant technical and contractual experience, and no conflict with either Party.
  3. Agree fees and expenses, including who pays them and how they're shared. Read the contract, because the terms are in the DRSC and the appointment details.
  4. If there are subcontracts, think about joining disputes. The ECS provides for a main contract Adjudicator to decide a subcontract matter at the same time when the same issue arises at both levels.
  5. Keep a signed copy with the contract documents, not in somebody's personal email.
  6. For older projects, check whether the NEC3 Adjudicator's Contract applies. Under NEC3, the form and the wording differ.

What people get wrong

  • Leaving the appointment until a dispute starts. In adjudication, the clock runs fast. Finding, checking and signing someone in a hurry adds risk.
  • Assuming a Dispute Avoidance Board replaces the Construction Act right. W3 is for cases where the Act doesn't apply. On a project where it does, a party keeps its right to adjudicate.
  • Thinking the DRSC sets out the dispute rules. The rules for referral are in the W Option. Reading only the appointment form leaves you missing periods that could cost you the right to refer.
  • Using the NEC3 form by habit. Under NEC4, W clauses refer to the DRSC. Update your template set when you make the move from NEC3 to NEC4.

We haven't reproduced the DRSC's own clauses or its fee terms here, so check these in your copy. Details of how the procedure works under NEC4 are in dispute resolution changes in NEC4.

See how this works in practice

Click through Contract Status with sample contracts: raise the notice, reply to it, and watch both sides of one record.

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This guide is general information in our own words, not legal advice. Your contract and its Contract Data always govern. NEC, NEC3 and NEC4 are trade marks of Thomas Telford Ltd; Contract Status is not affiliated with or endorsed by NEC.