General Conditions of Dispute Board Agreement: An Overview
Disputes are an inevitable part of any construction project. They can arise due to a variety of factors, including misunderstandings, miscommunications, contract breaches, design errors, and unforeseen circumstances. When disputes occur, they can quickly escalate, leading to delays, cost overruns, damaged relationships, and even legal battles. That`s where a Dispute Board comes in.
A Dispute Board (also known as a Dispute Review Board, Dispute Adjudication Board, or Dispute Resolution Board) is a neutral third-party panel of experts set up to help resolve disputes in a timely and cost-effective manner. The Dispute Board Agreement (DBA) is the contract that defines the scope, powers, and procedures of the Dispute Board. The conditions of the DBA are critical to the success of the Dispute Board process and should be carefully drafted and reviewed by all parties involved.
Here are some general conditions that should be included in a DBA:
1. Establishment of the Dispute Board: The DBA should specify the composition, appointment, and remuneration of the Dispute Board members. The Dispute Board should consist of one or three members, depending on the size and complexity of the project. The Dispute Board members must be independent, impartial, and experienced in the relevant fields.
2. Jurisdiction of the Dispute Board: The DBA should define the scope of the Dispute Board`s jurisdiction, including the types of disputes that can be referred to it and the stages of the project when disputes can be referred to it. The DBA should also specify the language and law applicable to the Dispute Board proceedings.
3. Procedures of the Dispute Board: The DBA should outline the procedures for the Dispute Board, including the submission of claims and responses, the timeframes for the Dispute Board`s decisions, the conduct of hearings, the requirements for evidence and witnesses, and the confidentiality of the Dispute Board proceedings.
4. Powers of the Dispute Board: The DBA should define the powers of the Dispute Board, including the authority to issue interim and final decisions, the power to make recommendations, the power to order specific performance, and the power to award costs and fees.
5. Relationship with the Parties: The DBA should establish the relationship between the Dispute Board and the parties involved, including the obligations of the parties to cooperate with the Dispute Board, the role of the Dispute Board vis-à-vis other contractual mechanisms such as arbitration and litigation, and the consequences of non-compliance with the Dispute Board`s decisions.
6. Termination of the Dispute Board: The DBA should provide for the termination of the Dispute Board, including the circumstances under which the Dispute Board can be terminated and the consequences of termination.
In conclusion, a well-drafted and carefully reviewed DBA is essential for the success of any Dispute Board process. The conditions of the DBA should be clear, concise, and comprehensive, and should reflect the needs and expectations of all parties involved. A Dispute Board can be an effective and efficient mechanism for resolving disputes in construction projects, and the DBA is the key to unlocking its potential.
