The first step in the dispute resolution process under the NEC3 is to notify the Employer and the Project Manager of the dispute within 4 weeks after the Contractor became aware of the dispute. If the dispute is not notified within this period, the Contractor is time-barred from referring the dispute to adjudication. Once the dispute is notified, it must be referred to the adjudicator between 2 and 4 weeks after the notification of the dispute. In practice, the parties are encouraged to meet during this period (in other words after the dispute has been notified, but before it is referred to adjudication) to attempt to settle the dispute. If either party is not satisfied with the adjudicator’s decision, they may refer the dispute to the “tribunal”. The tribunal may be litigation or arbitration. The tribunal is agreed between the parties at the conclusion of the contract. The dispute resolution process does not necessarily address conflicts in construction projects, however, the NEC3 caters for the management of risks, which could later on lead to conflicts, by requiring the parties to give early warnings. An early warning lets the other party know if there is something which could interfere with the service – the parties then attend a risk reduction meeting and agree on how to manage risks. This process allows the parties to identify and resolve risks before it evolves into a dispute.
What is the NEC3 Dispute Resolution Process and how does it address conflicts in construction projects?
Greeting : IT Telkom
The first step in the dispute resolution process under the NEC3 is to notify the Employer and the Project Manager of the dispute within 4 weeks after the Contractor became aware of the dispute. If the dispute is not notified within this period, the Contractor is time-barred from referring the dispute to adjudication.
Once the dispute is notified, it must be referred to the adjudicator between 2 and 4 weeks after the notification of the dispute. In practice, the parties are encouraged to meet during this period (in other words after the dispute has been notified, but before it is referred to adjudication) to attempt to settle the dispute.
If either party is not satisfied with the adjudicator’s decision, they may refer the dispute to the “tribunal”. The tribunal may be litigation or arbitration. The tribunal is agreed between the parties at the conclusion of the contract.
The dispute resolution process does not necessarily address conflicts in construction projects, however, the NEC3 caters for the management of risks, which could later on lead to conflicts, by requiring the parties to give early warnings. An early warning lets the other party know if there is something which could interfere with the service – the parties then attend a risk reduction meeting and agree on how to manage risks. This process allows the parties to identify and resolve risks before it evolves into a dispute.