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Contracts for Construction and Engineering Projects


Page 351

CHAPTER 27

The commercial value of Dispute Boards under FIDIC contracts

The commercial value of Dispute Boards under FIDIC contracts

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27.1 Introduction

The FIDIC rainbow suite contracts2 are the most widely used international construction contracts, particularly in eastern Europe, the Middle East and Africa. Since 1999, these contracts have provided for the appointment of a Dispute Adjudication Board (DAB)3/Dispute Board (DB)4/Dispute Avoidance/Adjudication Board (DAAB)5 that can adjudicate disputes more speedily and economically than arbitration.6 This innovation removed the Engineer's7 role as initial dispute adjudicator, and thereby addressed the perceived lack of independence of the Engineer, appointed by the Employer.8 Notwithstanding the detailed process of dispute resolution in the modern FIDIC contracts, there has been some doubt as to their efficacy, particularly following several judgments in Singapore. Recent judgments, reviewed in this chapter, have provided welcome clarity on the mandatory requirement for a DB decision, and its enforceability.

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