NEC Contracting: Evaluation of the Inclusion of Dispute Review Boards in lieu of Adjudication in the Construction Industry in the United Kinddom

Shane E. Murphy, John P. Spillane, Caroline Hendron, John Bruen

    Research output: Contribution to journalArticlepeer-review

    Abstract

    The construction industry is renowned for spending vast sums in the resolution of disputes, but never in the prevention. The purpose of this paper is to analyse the New Engineering Contract (NEC) to determine whether or not adjudication has become misaligned with the contract’s objective of promoting effective management. In doing so, the paper examines dispute review boards in order to ascertain if they could be a viable alternative to adjudication. A sequential mixed methodology is adopted including a detailed literature review, eight semi-structured interviews, culminating in the circulation and analysis of a questionnaire, to record the significance of the factors identified. The research concludes that the majority of individuals agree that dispute review boards would be more aligned with the NEC. The familiarity of members, the potential to curb rogue behaviour of parties and the proactive nature of the board are flagged as positive features, however the cost aspect requires further investigation. The reservations made in the study about adjudication, such as the priority given to speed over accuracy and also the adversarial nature of the process, suggest that a preventative step prior to proceeding to adjudication would coincide more with the three core themes of the NEC Contract and therefore, be a positive addition.
    Original languageEnglish
    Article number04514002
    Number of pages11
    JournalJournal of Legal Affairs and Dispute Resolution in Engineering and Construction
    Volume6
    Issue number4
    Early online date17 Jun 2014
    DOIs
    Publication statusPublished - Nov 2014

    Keywords

    • Alternative Dispute Resolution, Contract Management, UK Construction Industry

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