Civil Engineering Reference
In-Depth Information
18.6.2 Standard form provisions, rules and procedures
Provisions regarding dispute boards are to be found in certain standard form con-
tracts. For example, in 1995, the FIDIC Orange Book contract (and later the Red,
Yellow, Gold and Silver topics) introduced the concept of a Dispute Adjudication
Board (DAB) to which claims would be submitted for consideration and which would
issue decisions to parties to the contract which would be binding unless a contrary
decision was subsequently made in arbitration proceedings. he Red and Gold topics
provide for a permanent DAB while the Silver and Yellow Books provide for the Board
to be appointed on an ad hoc basis. The FIDIC procedure provides for a binding
decision to be made within 84 days of referral of the dispute. Unless a notice of dissat-
isfaction is then issued within 28 days, the decision becomes final and binding. The
International Chamber of Commerce produced a set of Dispute Board Rules in 2004
and the Institution of Civil Engineers (ICE) produced a Dispute Resolution Board
Procedure in 2005.
18.6.3 Membership and role
hemembersoftheboardareappointedatthebeginningoftheprojectandremainin
place until completion. There are often three members, often a mixture of construc-
tion professionals such as engineers and lawyers. In some cases, each party would
nominate one member with the parties approving each other's nominees, then those
two members appoint a third member as chairman. In some cases there is one per-
son appointed - referred to in FIDIC contracts as a Dispute Review Expert (DRE).
They are provided with the contract documents and other relevant information.These
boards can have a roving role whereby they visit the site and the parties on a regular
basis, and either identify possible future areas of dispute or deal with any matters
which have arisen. Alternatively, they can be brought in as and when disputes arise
to make a recommendation or decision. hese boards tend to be used particularly on
larger and long-running contracts.
Members of the boards are chosen for their skills and experience in both dispute
resolutionproceduresandalsothetechnicalissuesinvolvedintheparticularcontract.
They should also be independent of the parties. If the board are involved in visiting
sites on a regular basis, then not only do they become aware of disputes at an early
stage but also, if disputes do arise, they are able to gain an understanding of the issues
very quickly given their knowledge of the project.
Dispute Boards are used in a number of different ways. The function of a Dispute
Review Board (DRB) is to make a recommendation to the parties with which the
parties may comply on a voluntary basis, though they may not be required to do so.
In some cases the recommendation would be binding if neither party expressed dis-
satisfaction within a specified period. A Dispute Adjudication Board (DAB) issues
decisions which may be binding on the parties, on an interim basis, if the contract
so provides. A Combined Dispute Board (CDB) is a combination of both DRBs and
