ENHANCING CONTRACTUAL STABILITY: ESTABLISHING STANDING DISPUTE BOARDS UNDER FIDIC CONDITIONS OF CONTRACT

Abstract

Construction projects are inherently complex undertakings characterized by multifaceted contractual relationships and significant financial stakes. Frequently, contracts or agreements lack sufficiently clear mechanisms for dispute resolution, resulting in parties staunchly defending their respective positions when disagreements arise. Contractors may promptly submit claims for issues such as disruptions, lack of site access, and delayed payments. While contractors are entitled to notify claims, such notifications can escalate into full disputes, particularly when financial impacts are considerable. To mitigate these conflicts, the establishment of a Dispute Board serves as an effective alternative resolution method. This paper discusses the necessity of early Dispute Board formation, contractual frameworks for Dispute Boards, and recommendations for implementing a Standing Dispute Board through contract amendments. The discourse also highlights practical examples and elaborates on cost-benefit considerations.