Dispute Avoidance and Dispute Boards
Arbitrating or litigating construction disputes is time consuming and costly. In most situations it is much better to try to avoid disagreements developing into formal disputes. This is the primary aim of the Dispute Board (DAB or DAAB).
Dispute Boards are increasingly used for high-value and complex construction projects and are mandatory in certain contracts, such as those published by FIDIC.
The Dispute Board is appointed at the inception of the project and is kept up to date through regular site visits and meetings with the contracting parties. The Dispute Board is on hand to provide support in the form of informal assistance, and to and work with the parties to deal with and resolve problems as they arise during the course of the contract. For disputes which cannot be avoided, the Dispute Board may be requested to formally determine the dispute and provide a contractually binding decision. The process is normally much quicker and more economic than arbitration or litigation and has the advantage that it is confidential.
Murray Armes has extensive experience of, and has been appointed to, numerous Dispute Boards for significant international infrastructure projects. He is a is a FIDIC President’s List International Adjudicator and Past President, as well as a longstanding member, of the Dispute Resolution Board Foundation. He has been appointed as DAB member, chair and sole DAB member in some of the largest, most challenging and complex construction and infrastructure projects in the world, some recent examples being:
- The ITER prototype nuclear fusion project, Cadarache, France (DAB member)
- High Luminosity Project, CERN (DAB member)
- EPR nuclear power station, Scandinavia (DAB member)
- Power distribution project, East Africa for the Millenium Corporation (DAB chair)
- Embassy project, Central Africa (DAB member)
- New Data Centre project, CERN (Sole DAB member)
- Landmark commercial project, Iraq (DAB member)
- New ecological building, CERN (DAB member)
- Metro Rail Project, South East Asia (DAB member)
- Hospital project, Jamaica (Sole DAB member)
Conflict Avoidance Panels
Dispute Boards are not commonly used in the UK. As an alternative, Conflict Avoidance Panels (CAPs) are an effective measure to mitigate the time and cost impact of construction disputes and work well alongside statutory adjudication.
CAPs avoid the need to resort to formal dispute resolution measures by implementing real time and proactive dispute avoidance during the course of a project. Many organisations acknowledge that disputes frequently arise. They understand that the larger the project is, the greater the risks and ramifications of any conflict. They also have to work within the framework of statutory adjudication Transport for London, for example, see their panel as a way to promote good communication and outcomes for its construction projects. The idea behind CAPs is to try and safeguard against issues escalating uncontrollably. The aim is to avoid the need for adjudication, or formal dispute resolution such as litigation. All parties benefit from impartial expert guidance to help them make informed judgments and maintain the smooth running of the project.