NEC disputes follow the route set by the chosen dispute Option: W1 or W2 usually, with W3 as an alternative under NEC4. On most UK construction contracts that means W2, where a Party can refer a dispute to an Adjudicator at any time, and any dissatisfied Party can then go to the tribunal.
This is a guide to which route you're on and what to do first. It's part of our wider section on NEC disputes and termination.
First, find which route you are on
- Look in the Contract Data. The dispute Option should be stated in the opening part.
- Check the edition. NEC3 W1 and W2 have no Senior Representatives stage, and the time limits differ.
- Check for amendments. Many contracts add a Z clause for negotiation or mediation steps, or change the periods.
- Look up the Adjudicator and the tribunal. Both should be identified in the Contract Data.
W1 is normally for work outside the UK's Housing Grants, Construction and Regeneration Act 1996. Take advice if you're not sure the Act applies, since some types of work fall outside it, and the scope of "construction operations" is a legal question.
The people involved
| Who | What they do | Binding? |
|---|---|---|
| Senior Representatives | Each Party's senior person meets the other's to try to settle. They produce a list of issues agreed and not agreed | Agreed issues are put into effect |
| Adjudicator | An independent person who decides the dispute, with reasons | Yes, unless the tribunal revises it |
| Tribunal | The arbitrator or court named in the contract, which settles the dispute fully | Yes, subject to the general law |
| Dispute Avoidance Board (W3 only) | A standing panel who help before matters harden | Its recommendation isn't an Adjudicator's decision |
A dispute from start to finish, by route
| Step | NEC4 W1 | NEC4 W2 |
|---|---|---|
| Start | Refer to Senior Representatives, within the time in the Dispute Reference Table | Notice of adjudication at any time. Senior Representatives only if both Parties agree |
| Talks | Up to three weeks, with statements of case | The same, if you've agreed to use this step |
| Adjudication | Only for issues not agreed by the Senior Representatives | Open at any time |
| Decision | Four weeks after the information period | Twenty-eight days after the referral, with possible extensions |
| Tribunal | Four weeks to notify | Four weeks to notify |
These are NEC4 periods from the subcontract text, which uses the same structure as the ECC. Check your own contract before relying on them. Our guide to the time limits sets them out fully.
Is it a dispute yet?
Not every disagreement needs a formal route. Before reaching for a notice, ask:
- Has the other side actually made a decision, or are you still in discussion?
- Is the issue already within a contract process, such as a compensation event quotation or a Project Manager's assessment?
- Can it be dealt with in an early warning meeting, or at a senior level informally?
- What is it worth, compared with the cost of an adjudication?
Under W1, informal talking doesn't stop the clock. Under W2 the start date is flexible, but memories and evidence still fade, so don't leave things too long.
What to do on day one
- Write down the disputed decision. Who made it, on what date, and under which clause?
- Diarise the dates. Include the final assessment dates, if the matter affects the final amount due. See the final assessment guide.
- Preserve records. Programmes, diaries, emails, measurements and notices.
- Keep performing. The contract requires everyone to proceed as if nothing were in dispute until a decision is given.
- Get advice early. A legal or commercial adviser will be most useful before the notice goes out.
- Consider the commercial settlement. Often the right answer is agreeing a figure.
A short example
A fictional Contractor gets a Project Manager's assessment of £40,000 on a compensation event it quoted at £95,000. Illustrative only. Under W2, it could adjudicate straight away. It first asks for a senior meeting, which both Parties agree to. They settle the labour rates, which reduces the difference to £15,000, and the remaining point is then a short, focused adjudication, or else a commercial decision to agree a figure. See the Project Manager's assessment for how that decision should be reached.
Common errors
- Skipping Senior Representatives under W1. The route has to be followed.
- Relying on Y(UK)2 for adjudication. The dispute Option, not Y(UK)2, sets the dispute process.
- Using statements from Senior Representatives' talks later on. Those discussions are off limits in later adjudication or tribunal proceedings.
- Bringing the same dispute back to a second Adjudicator after it has been decided. The Option doesn't allow that.
Related guides
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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.