Dispute boards on major infrastructure projects

Abstract

Prevention is better than cure. Using dispute boards on major infrastructure projects has been shown to reduce significantly the number of issues that become full-blown disputes and thereby involve the parties in time-consuming and costly arbitration and/or litigation. In this paper the author, a past-president of the Dispute Resolution Board Foundation and a leading exponent of dispute boards, reviews the history, purpose and proven benefits of dispute boards in the avoidance and early evaluation (adjudication) of disputes within the construction industry. The paper emphasises the importance of good job–site communication and how a proactive dispute board, particularly on international contracts, can positively influence on-site relationships and bring major project management benefits to the construction process. The appointment of dispute boards, the terms of engagement and best-practice procedures are discussed. The article reveals the remarkably successful dispute resolution figures of 98‥ when dispute boards are used in addition to the hidden benefits of dispute avoidance.