Dispute Resolution Boards (DRBs) Flashcards Preview

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Flashcards in Dispute Resolution Boards (DRBs) Deck (3)
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What are DRBs?

Panels of experts knowledgable about the project and provide interim solutions in a quick and effective manner

They make recommendations rather than binding decisions

An effective dispute avoidance, resolution and management system for contractual disputes on medium / large scale projects

Purpose = to save money, ensure the project is delivered on time and on budget, and help maintain relationships

Usually exist throughout duration of contract, and can be referred to at any time by any one of the Parties for a recommendation / determination of the dispute referred.


What are the advantages of DRBs?

Understanding - DRB involved with project throughout = ‘hands on’ knowledge of every aspect of project

Gives decision quickly (in some cases, as quickly as 30 days after the formal request)

Confidentiality – Any disputes and decisions = confidential

Expertise – members of the DRB = selected for their knowledge and expertise before dispute has arisen

Flexibility – Parties can agree procedure in advance and agree any changes to it during course of the project

Prevention of Disputes – existence of Board can prevent disputes escalating and avoid frivolous claims

When a dispute arises, the Board will have a much better understand than a Tribunal, for example, which would only be appointed after a dispute has arisen


What are the disadvantages of DRBs?

Need to quickly resolve dispute and allow project to continue = 'rough justice'

While not as lengthy as arbitration / litigation, process still requires disputing parties to incur costs of dispute

Relatively short proceedings means that process does not always result in full examination of the facts

Determination / recommendation may reflect a compromise between the parties' positions rather than a firm, final award in favour of one party or another