Thursday, January 15, 2015

Types of Dispute Boards


 There are three types of Dispute Boards: Dispute Review Boards, Dispute Adjudication Boards, and Combined Dispute Boards

• Historically, the first Dispute Boards were called a Dispute Review Board ("DRB") and they made recommendations rather than decisions

• This was followed by the concept of a Dispute Adjudication Board ("DAB"), which gave binding decisions rather than just recommendations

Combined Dispute Board ("CDB") normally issues recommendations but may issue a decision if a party so requests and no other party object

• A number of different terms may be used to describe adjudication panels. For example, the FIDIC standard form contracts refer to ‘Dispute Adjudication Boards', whilst the World Bank refers to ‘Dispute Review Boards'. Both these panels make interim binding decisions

          The terms ‘Dispute Board’ and ‘Dispute Review Board’ may have different meanings to parties from different jurisdictions. Dispute Review Board may indicate that it makes non-binding recommendation as is common in the United States

          Dispute Boards may be set up on an ad hoc basis when a dispute arises. Alternatively, they may be appointed at the start of a project and deal with all disputes that arise on the project (standing Dispute Board)

 

Institutional Rules:

          In 1995, the World Bank introduced the requirement for Dispute Review Boards in a revised edition of its Standard Bidding Documents – Procurement of Works (SBDW). The SBDW is updated every few years, with the most recent version of the SBDW published in March 2012

          FIDIC first introduced the concept of a Dispute Board into its contracts in 1995 Orange Book. FIDIC also issued supplements to the old Red Book in 1996 and the old Yellow Book in 1997, extending the use of Dispute Boards to these contracts. The 1999 editions of the Red Book, Yellow Book and Silver Book (EPC/Turnkey Projects) included interchangeable variations of Dispute Boards

          The AAA published its Dispute Review Board Guide Specifications (DRB Guide Specifications) on 1 December 2000. The AAA also issued a Three-Party Agreement (a model contract providing for the rights and duties of the employer, contractor and DRB members) and an AAA roster of experienced persons from which Dispute Board members can be selected

          The ICC published its Dispute Board documents in September 2004. The documents comprise a set of Dispute Board Clauses (ICC DB Clauses), Dispute Board Rules (ICC DB Rules) and a Model Dispute Board Member Agreement (DBMA)

          Dispute Board Federation (DBF) published its Ad Hoc Dispute Adjudication Board Rules in 2011. The rules are a stand-alone procedure to be used in independently administered Dispute Board matters

 

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