DAAB AS A COLLABORATIVE DISPUTE RESOLUTION UNDER FIDIC RED BOOK 2017 2nd EDITION

Abstract

The increasing complexity and risks in the construction industry, combined with the lack of awareness among construction service practitioners in Indonesia regarding contract administration, have made claims and disputes in construction projects a common occurrence. The best way to avoid disputes is to prevent or minimize differences in interpretation that could escalate into formal disputes. The FIDIC Rainbow Series 1999 contracts mandated the appointment of a Dispute Adjudication Board (DAB) as a non-litigation alternative to act as an impartial intermediary between the parties. With the issuance of the FIDIC Rainbow 2017 2nd Edition, reprinted in 2022 with amendments, additional authority has been granted to the Dispute Avoidance/Adjudication Board (DAAB), making it a more collaborative dispute resolution alternative compared to the FIDIC Rainbow Series 1999. The inclusion of the new Sub-Clause 21.2 [Avoidance of Disputes] in the FIDIC Rainbow 2017 2nd Edition is expected to encourage parties to view the DAAB not only as a dispute resolution alternative but also as a mechanism for dispute avoidance before disputes arise.