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CHAPTER 10 Enforcement of DAB decisions under the FIDIC forms of contract

Construction Arbitration and Alternative Dispute Resolution


Page 161

CHAPTER 10

Enforcement of DAB decisions under the FIDIC forms of contract

Enforcement of DAB decisions under the FIDIC forms of contract

Dedezade Taner

Introduction

10.1 At the heart of the multi-tiered dispute resolution mechanism of the FIDIC 1999 forms of contract (as amended in 2017) is the Dispute Board (‘DAB’ or ‘DAAB’ as it is now known). Fundamental to its successful operation is for the parties to have not only an obligation to comply with the DAB decision pending arbitration, but a working and effective mechanism to enforce that obligation should the DAB’s decision be disregarded. Absent such a mechanism, a party, usually an Employer, can wantonly disregard the DAB’s decision and there will be no incentive for the parties to settle in the amicable settlement period. The Employer is in a much stronger negotiating position if it can withhold payment until the final award due to inevitable cash-flow considerations that all contractors have.

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