Dispute Adjudication Boards - a preferred mechanism for tunnelling projects

Dispute Adjudication Boards - a preferred mechanism for tunnelling projects ? Tunnelling projects typically go hand-in-hand with uncertainty, as even with a thorough investigation the exact geological conditions are unpredictable and during construction the design has to be adjusted to the actual ground conditions. These adjustments can lead to additional costs and delays, thereby challenging contract administration and project management. As a consequence of the above, tunnelling is prone to disputes. Construction contracts should thus provide a system for resolving claims and disputes on compensation in order to avoid the escalation of the dispute and to maintain good relationships during these long-term projects and beyond.

Dispute Adjudication Boards ( DABs) are designed to serve this exact purpose. DABs aim to avoid the occurrence of disputes during construction and to prmote the early resolution of disputes.

In the tunnelling sector, DABs were first made use of in 1987 in the Anglo-French Channel Tunnel Project and consisted of a permanent five member Board. With the project having a total value of US$14bn, only 13 disputes arose, of which 12 were setlled pre-arbitration. The use of DAB procedures received a boost in 1995 when introduced in one of the FIDIC Books, which are today considered to be possibly the most frequentlly used contract forms for international infrastructure projects. Due to the popularity of these standard forms, DABs are now prevalent in construction projects such as tunnelling. Accroding to the ( fragmentary) data collected by the Dispute Resolution Board ( DRBF), almost 3000 projects included Dispute Resolution Boards like DABs. This prevalence of DABs in particular can be expected to further increase in the tunnellling sector with the publication of a new FIDIC Book designed specifically for Undergroudn works ( see our latest article in the last Tunnelling Journal Issue April/ May 2017). DABs are also recognised by the International Tunnelling Association ( ITA) for tunnelling projects. READ THE COMPLETE ARTICLE HERE.

Helm, U, & Bonke, F, (2017). Dispute Adjudication Boards - a preferred mechanism for tunnelling projects ? , Tunneling Journal, June / July 2017, p44 to p45, http://tunnellingjournal.com/tunnelling-journal-junejuly-2017/