The Obligation To Adjudicate Under NEC

Summary

A recent case serves as a reminder that, when using an NEC contract, a dispute must first be referred to adjudication before court or arbitration proceedings

Since its introduction as an interim method of dispute resolution in the Housing Grants, Construction and Regeneration Act 1996, adjudication has often been seen as the primary method of dispute resolution for construction disputes, as it is quicker and more cost-effective than court or arbitration.

Adjudication is not, however, a required step before formal proceedings under the 1996 Act; rather, it is an optional method of dispute resolution that a party can choose to take. Nevertheless, NEC option W2 – which is intended for contracts in the suite that are subject to the 1996 Act – states that a dispute must be referred to adjudication before it is referred to the tribunal.