Dispute Boards -Are three minds better than one?

摘要

Dispute avoidance and adjudication boards are a common feature of major infrastructure and energy projects. They provide the parties with a way of avoiding disputes or if disputes arise, a way of resolving them more quickly and at lower cost than referring the matter to court or arbitration.There are a number of different types of dispute board. A dispute 'avoidance' or 'review' board is generally appointed at the outset of a project to undertake an advisory role in relation to issues that arise during project execution. It provides non-binding advice and facilitates the parties to resole their issues before they germinate into formal disputes.A dispute adjudication board by contrast generally carries out an adjudicator role, issuing decisions in respect of disputes referred to it. The parties generally have a contractual obligation to comply with decisions issued by a dispute adjudication board unless and until one of the parties refers the matter to court or arbitration for final determination. Sometimes these boards are set up when a dispute arises (an'ad hoc'board).Increasingly they are established at the outset of a project as a 'standing' board. It is also becoming popular to have a dispute board which carries out both a dispute avoidance as well as adjudicator function.