The NEC adjudication procedure under Option W2 starts with a notice of adjudication, moves to a referral within seven days, and normally ends with a decision within twenty-eight days of that referral. This is the procedure for contracts covered by the UK's Housing Grants, Construction and Regeneration Act 1996, which covers most UK construction work.
The steps below follow W2 in the NEC4 subcontract text, with NEC3's W2 very similar. For the other routes, see NEC disputes and termination.
The steps
| Step | Who | When |
|---|---|---|
| Notice of adjudication, briefly saying what the dispute is and what decision is wanted | The referring Party, copied to a named Adjudicator | Any time |
| Confirm able to act, or resign | Adjudicator | Within 3 days of receipt |
| Nomination, if no one is named or the named person can't act | Parties jointly or the nominating body | Within 4 days of a request |
| Refer the dispute, with supporting information, and copy it to the other Party | The referring Party | Within 7 days of the notice |
| Further information from a Party | Either Party | Within 14 days of the referral, unless extended |
| Decision with reasons | Adjudicator | Within 28 days of the referral, unless extended |
| Correct clerical or typographical errors | Adjudicator | Within 5 days of the decision |
| Notify intention to refer to the tribunal | A dissatisfied Party | Within 4 weeks of the decision being notified |
Periods given in days don't count bank holidays, Christmas Day or Good Friday. The decision period can be extended by up to 14 days with the referring Party's consent, or by any period both Parties agree.
A worked timeline
A fictional dispute about the assessment of a compensation event. Dates are illustrative, and ignore any bank holidays.
| Date | What happens |
|---|---|
| Mon 2 March | Contractor gives notice of adjudication, copied to the named Adjudicator |
| Thu 5 March | Adjudicator confirms it can act |
| Mon 9 March | Contractor refers the dispute, with its supporting documents |
| Mon 23 March | Client's further information is due |
| Mon 6 April | Decision due, 28 days from the referral |
| Mon 13 April | Where the decision alters a sum notified as due, the new sum falls due 7 days after the decision (NEC4 subcontract text; NEC3 uses the later of that date and the final date for payment) |
| Mon 4 May | Last day to notify the tribunal, if the decision was given on 6 April |
In a real case, check bank holidays, which would move several dates in this example. Agree in advance who's counting.
The Adjudicator's powers
- Look again at what the Project Manager or Supervisor did, or didn't do, on the disputed matter, and change it.
- Alter a matter treated as accepted or correct, such as a treated-as-accepted quotation.
- Look into the facts and the law on its own initiative.
- Instruct a Party to provide more information or take other action, within a stated time.
- Carry on and decide on what it has, if a Party doesn't comply.
- Allocate its own fees and expenses in the decision.
Additional cost or delay to the Contractor in a decision follows the compensation event assessment rules. So a claim should be built on Defined Cost and the Accepted Programme, not on a general claims approach. See assessing compensation events.
If a decision is late
The Parties and the Adjudicator can agree more time. If they don't, either Party can treat the Adjudicator as having resigned. A decision that arrives late raises legal questions, so take advice if it happens.
What makes a good referral
- One clear question and the precise decision you want, in the same words as the notice.
- A chronology with document references.
- The contract's clauses, cited by the correct edition.
- Calculations someone else can follow.
- Evidence: programmes, records and statements. Short and well-organised beats long and vague.
The notice defines what's being decided, so don't draft it loosely. The 7-day referral period is short, and most of the work should already be done before the notice goes out.
Being on the receiving end
Fourteen days for further information is tight, and it may come at a difficult moment. Assign someone immediately, gather the record, and if you need more time, ask early: the period can be extended only if the Adjudicator and the Parties agree. Don't ignore the process, because the Adjudicator may then decide without your input. Our page on the role of the Adjudicator gives more background.
Other points
- Subcontract link. Where the same matter arises under a subcontract, W2 has joining provisions, with the necessary consents. See ending an NEC subcontract for the related subcontract rules.
- W1 is different. The steps and time bars aren't the same. See Option W1.
- Enforcement. The decision binds as a contractual obligation, and isn't an arbitral award. Take legal advice on what enforcement involves in practice.
Related guides
- NEC Disputes and Termination
- Time Limits for NEC Disputes
- The Tribunal
- Avoiding Disputes on NEC Contracts
- How Disputes Work Under NEC
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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.