Dispute Board

Dispute Board refers to an individual or a panel of neutral and independent members, selected by the contracting parties, to assist in mitigating or overcoming disputes; generally focused on large scale projects like Construction.

Unlike other dispute resolutions mechanisms that are formed only when a dispute arises. The Dispute Board is a standing body that is formed at the beginning and is only dissolved at the end of projects. The primary objective of the dispute board is to resolve any issues or disputes that may arise during the course of the project. The formation of a Dispute Board is standard practice in large scale construction and infrastructure projects, without resorting to arbitration or litigation proceedings.
Some of the important roles of the Dispute Board are:

  • It has the right to issue binding decisions. If either party objects to the decision, the party can refer the dispute to arbitration.
  • The Dispute Board is actively involved throughout the period of the contract and possibly even after, for the agreed period of time and help in avoiding potential disputes.
  • The Dispute Board is free to act as part of project administration and can influence the performance of the contracting parties during the course of the contract.
  • The powers of the Dispute Board are limited to only those vested upon them by the agreement.