Dispute Boards for Construction Projects
A Dispute Board is a panel established to provide timely resolution of disputes that may arise during the course of a construction project. The purpose of the board is to prevent disputes from escalating into formal litigation or arbitration, which can be costly and time-consuming.
Dispute Boards typically consist of one or three members who are knowledgeable in construction law and processes. They are appointed at the beginning of the project and remain involved throughout its duration. The board’s members may be chosen by the parties involved or appointed by a designated authority.
The process typically involves the following steps:
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Establishment: Parties agree on the formation of a Dispute Board and select members based on expertise.
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Ongoing Involvement: The board engages in regular meetings and site visits to stay informed about the project’s progress and challenges.
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Dispute Resolution: When disputes arise, parties present their issues to the board. The board will consider the facts and may facilitate discussions between parties, ultimately providing recommendations or binding decisions, depending on the agreed-upon terms.
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Types of Dispute Boards: There are generally three types of Dispute Boards:
- Advisory Board: Provides non-binding recommendations.
- Determination Board: Offers binding decisions on disputes when agreed upon by the parties.
- Combined Board: Functions as both an advisory and determination board.
Example: In a large infrastructure project, if a contractor claims a delay due to unforeseen circumstances, the Dispute Board can quickly assess the situation, determine the validity of the claim, and provide a resolution before the delay affects the project’s completion timeline.
Utilizing a Dispute Board can lead to more efficient project management, fostering collaboration and communication among parties, and reducing the likelihood of formal disputes.
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