WHAT IS THE VALUE AND IMPACT OF EARLY DISPUTE EVALUATION IN THE UK AND INTERNATIONALLY?

Early neutral evaluation (ENE) is a fairly recent form of alternative dispute resolution procedure used in the construction industry. In the UK, ENE is usually carried out on an entirely without prejudice basis, however the parties may agree that any or part of it may be referred to at trial or any subsequent hearing. The early neutral evaluation consists of a preliminary assessment of the issues in dispute for use as a basis for negotiations which may result in a settlement of the dispute. An independent person is appointed by the parties who reviews the case and provides an opinion, in written form and in some detail, with reasons on the merits of the matters in dispute. The opinion is non-binding but provides the parties with what in the opinion of the independent person a formal tribunal may decide whether a court or an arbitrator, if the dispute is not resolved. However, ENE has yet to take off in the construction industry in the UK. This paper will explain this procedure and explore the use of it in the UK and internationally, considering the benefits and drawbacks of its use. It will consider whether or not it is more effective than other early resolution forms such as mediation and adjudication. It will argue and conclude that it is a very useful cost effective procedure, particularly in the resolution of complex disputes, whether local or international.