Adjudication has been hailed as a great success: it has certainly taken pressure off the courts and compared to litigation and arbitration it has provided, at least in theory, a quick and cheap way for the construction industry to have disputes resolved.
Litigation has always been expensive but the signs are that it is becoming increasingly so. A survey conducted by the US Chamber Institute for Legal Reform and others showed that costs were increasing at a faster rate than increases in hourly rates
ITER is one of the largest and most important energy projects currently under construction. The acronym, ITER, in this case stands for “International Tokamak Experimental Reactor”, the aim being to construct the world’s largest experimental nuclear fusion reactor.
FIDIC contracts are unique because they are the only international standard form suite of contracts to promote dispute avoidance. The vehicle for this is the Dispute Adjudication Board (DAB) and the first role of the DAB is to help the contracting parties avoid disputes.
How to stop a simple problem spiraling from a breeze to a whirlwind. Disputes are costly. On average 50% of the legal costs borne by the construction industry are related to disputes and for roughly 10% of projects, 10% of the total costs were legal costs.
King’s College London’s report “2024 Dispute Boards International Survey: A Study on the Worldwide Use of Dispute Boards over the Past Six Years” (the “Report”).
There has, for many years, been some considerable international interest in Dispute Review Boards (‘‘DRBs’’) and Dispute Adjudication Boards (‘‘DABs’’), collectively referred to as Dispute Boards (‘‘DBs’’).
In August 2014 the Chartered Institute of Arbitrators produced and published a set of international commercial dispute board rules (the “CIArb Rules”).
This paper focuses on selecting, nominating, appointing and establishing dispute boards. Consideration is given not just to the legal issues and standard form provisions available, but also to the practical issues and difficulties of identifying and appointing board members for international projects.
The FIDIC Contracts Committee has issued a Guidance Note dealing with the powers of, effect of and the enforcement of Dispute Adjudication Board (DAB) decisions.
