Dispute Boards and construction contracts 1

Abstract

Dispute Boards have been used for over 30 years in the United States and internationally on major projects, and have proven to be very effective both in dispute avoidance, and where disputes are unavoidable, in reducing the cost and time of their resolution. The efficacy of a Dispute Board derives from its ability to assist the project parties to determine solutions to problems before they become disputes, often by suggesting “non-contractual” means of resolving issues. If it must assume a dispute resolution role, a Dispute Board can conduct a hearing and assess the evidence and submissions and provide a determination on the merits of a dispute in much less time and at lower cost than could be achieved by other alternatives such as arbitration. A number of aspects of Dispute Boards are considered in Chapter 23. These include the contractual requirements of a contract clause, procedural rules and a tripartite agreement between the contracting parties and the Dispute Board Members, as well as the costs of Dispute Boards. The history of Dispute Boards in Australia to 2016, and their benefits and reasons for success, are briefly reviewed.