Partner, White & Case LLP Paris Legal Advisor, FIDIC Contracts Committee

In a recent judgment enforcing a “binding” but not “final” decision of a Dispute Adjudication Board (“DAB”), PT Perusahaan Gas Negara (Persero) TBK v CRW Joint Operation (Indonesia),1 the Singapore High Court (the “HC”) (per Vinodh Coomaraswamy J) has not only established a precedent that the construction industry will welcome but has contributed to a better understanding of the disputes clause in the FIDIC Conditions of Contract for Construction 1999 (the “Red Book”). It has done so both by (1) emphasising the importance, when interpreting the FIDIC disputes clause, of giving attention to its purpose to facilitate the cash flow of contractors, and (2) its rejection of the contention that failure to comply with a “binding” but not “final” decision is to be interpreted as giving rise to a dispute separate from the one underlying the DAB’s decision. The HC’s judgment contains a welcome, albeit critical, exposition on the disputes clause in the Red Book which is relevant equally to the FIDIC Conditions of Contract for Plant and Design-Build 1999 (the “Yellow Book”) and Conditions of Contract for EPC/Turnkey Projects 1999 (the “Silver Book”). Accordingly, it deserves to be well known and, consequently, will be examined in some detail here.