Dispute resolution mechanisms are essential for handling conflicts in construction projects, especially those that operate under FIDIC contracts. FIDIC contracts advocate for the use of Dispute Boards (DBs), Dispute Adjudication Boards (DABs), and Dispute Avoidance/Adjudication Boards (DAABs) to ensure that disputes are resolved in an efficient and timely manner, often without the need for formal arbitration or litigation.
Dispute Boards (DBs)
Dispute Boards are panels of independent experts appointed at the outset of the project to address any issues that arise during construction. These boards typically aim to resolve disputes while the project is ongoing. Their decisions are often non-binding but influential in keeping disputes from escalating.
Dispute Adjudication Boards (DABs)
DABs are formed specifically to adjudicate disputes under construction contracts, including FIDIC-based contracts. The DAB reviews the case and issues binding decisions, which remain in effect unless overturned by a later arbitration or court ruling.
Dispute Avoidance/Adjudication Boards (DAABs)
DAABs, introduced in the 2017 FIDIC suite of contracts, focus on preventing disputes from escalating by being proactively involved throughout the project. DAAB members are engaged not only to adjudicate disputes but also to provide guidance on dispute avoidance measures.
Procedural Aspects:
Appointment of the Board: The DB/DAB/DAAB is typically composed of one or three members, who are appointed based on their expertise in construction law and engineering.
Jurisdiction and Scope: The Board is authorized to resolve disputes related to contract performance, delays, variations, or any other contractual issue.
Decision-Making: After hearing the parties and reviewing the relevant documentation, the Board issues a decision. For DABs, the decision is binding unless it is challenged in arbitration.
Dispute Avoidance: In the case of DAABs, the board remains actively engaged throughout the project to help resolve potential disputes before they turn into formal claims.
Our Services Include:
Advisory: We provide advice on the establishment and operation of Dispute Boards.
Representation:We represent clients in proceedings before DBs, DABs, or DAABs to ensure a Neutral favorable outcome.
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