The Tribunal

The NEC tribunal is whichever body the Contract Data names to settle disputes finally: normally either arbitration or the courts. A Party can only go there after the Adjudicator stage, and it has to give notice of its intention within four weeks of the decision.

"Tribunal" is NEC's term for this last stage in the wider NEC dispute route. It's the same word in NEC3 and NEC4, and clause references are W1.4 or W2.4, depending on your dispute Option.

Arbitration or the courts?

The choice is made in the Contract Data before the job begins. These are general points and not legal advice.

Point	Arbitration	Courts
Privacy	Usually private	Generally public
Who decides	An arbitrator chosen by the Parties or under the agreed procedure	A judge
Rules	The agreed arbitration procedure, within the Arbitration Act 1996 in England and Wales	Court rules
Costs	The Parties pay for the arbitrator and the venue as well as lawyers	Court fees and lawyers
Appeals	Limited	Wider, with permission
Bringing in others	Needs agreement	Generally simpler

If there are likely to be multi-party disputes, think hard about whether arbitration clauses in the main contract and subcontracts line up. Parallel proceedings can produce different results.

What goes in the Contract Data

• The tribunal. Name it clearly, such as "the courts of England and Wales" or "arbitration".
• If arbitration: the procedure. Name the rules that will apply.
• If arbitration: the place. The location for it.
• If arbitration: who chooses the arbitrator, if the Parties can't agree or the procedure doesn't state this.

Leaving these blank is a false economy. A dispute about how to resolve a dispute is expensive. See the Contract Data guide for how this fits with the rest of the entries.

Getting there

Condition	NEC4 W2 (subcontract text)	NEC3 W2
Must have been before the Adjudicator first	Yes, decided by the Adjudicator	Yes
Notice to the other Party	Within 4 weeks of notification of the decision, stating what's disputed and the intention	The same period
If no notice	The decision becomes final and binding	The same

W1 adds a route where the Adjudicator doesn't decide in time: a Party then has 4 weeks from when the decision should have been given. See time limits for NEC disputes for the wider picture.

Notifying isn't the same as starting proceedings. The contract requires the notice in that period. The proceedings themselves can start later, within the general law. That gap can be useful for further talks, so don't assume you need to file a claim at once.

What the tribunal can do

• Settle the dispute referred to it in full.
• Reconsider any decision of the Adjudicator.
• Look again at what the Project Manager or Supervisor did, or failed to do, on the disputed matter, and change it.
• Hear new material. The Parties aren't limited to what they put to the Adjudicator.

So this isn't an appeal from the Adjudicator. It's a fresh look at the dispute. The Adjudicator can't be called as a witness, which keeps the two stages apart. Under NEC4, statements and discussions at the Senior Representatives stage stay out of the later stages too.

Meanwhile, the decision still applies

Going to the tribunal doesn't stop the Adjudicator's decision from binding the Parties. It binds them until the tribunal changes it. A Party that loses an adjudication still pays, then tries to recover the money through the tribunal. That's what people mean when they talk about adjudication working as "pay now, argue later".

An example

A fictional £2.4 million dispute about delay on a marine project, with illustrative figures. An Adjudicator decides the Client owes £1.1 million. The Client thinks a key legal question was wrong, gives notice within four weeks, and pays. Eight months later, with new expert evidence, the arbitrator revises the figure to £700,000. The Contractor repays £400,000, with any interest the arbitrator awards. Both Parties have paid heavily in legal and expert fees to get there, so many disputes of this kind settle along the way.

Is it worth it?

1. What is the realistic range of outcomes, and what's the likely cost of each?
2. Is the disputed issue legal or factual? Some adjudication decisions may be more open to challenge than others.
3. What will it do to relationships and to other work?
4. Is a settlement, mediation or senior meeting a better option?

Take legal advice before committing to this stage.

Related guides

• NEC Disputes and Termination
• Avoiding Disputes on NEC Contracts
• Termination Under NEC
• Reasons for Termination
• Adjudication Under NEC
• Time Limits for NEC Disputes

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.