Dispute Resolution Boards (DRBs) - Dispute Boards (DBs)
What are Dispute Resolution Boards?
Dispute Resolution Boards, also known internationally as “Dispute Boards,” are an alternative dispute resolution method designed to help parties prevent or efficiently resolve disputes that arise during the execution of a construction contract while it is ongoing.
Dispute Resolution Boards operate from the commencement of the works until their final acceptance and serve as impartial third parties among the key stakeholders of the project (Owner or Client, Supervisor, and Contractor). They have both a consultative and preventative role, aiming to prevent disputes by issuing recommendations and a decision-making role, resolving disputes that could potentially hinder or halt the progress of the works by issuing binding decisions that are enforceable on both parties.
How are Dispute Resolution Boards formed and how do they work?
Dispute Resolution Boards are comprised of one or more experts with technical and legal expertise in construction matters, referred to as “adjudicators.” Adjudicators are kept informed about the progress of the works and compliance with technical aspects and have the authority to verify this through requests for information from the parties, site visits, and hearings (either on-site or at a suitable location).
The purpose of Dispute Resolution Boards is to ensure that work continues without interruption and progresses smoothly. This aspect underscores their practical importance in modern construction contracts.
What is the purpose and importance of Dispute Resolution Boards?
Infrastructure projects adhere to a timetable proposed by the Contractor, scheduling activities efficiently to optimize performance while minimizing costs and maximizing benefits. Conversely, the Owner or Client expects to receive the completed work within the agreed timeframe and based on predetermined cost and quality criteria. The Supervisor, hired by the Owner, oversees that the Contractor adheres to the project scope, budget, and quality standards.
In many construction projects, schedules and scopes are often modified for various reasons, leading to disagreements between the involved parties regarding who should bear the costs of such variations. This can raise questions such as: Was it included in the contract? Was it budgeted for?
Dispute Resolution Boards, as neutral and impartial third parties, aim to reduce conflict during construction contract execution and, if a dispute arises, resolve it by issuing binding decisions for the parties.
What services will the Arbitration Center of the Lima Chamber of Commerce provide?
The Center facilitates the establishment of Dispute Resolution Boards, offering parties a list of experts with proven experience in conflict resolution within the construction industry. It ensures that the Boards operate efficiently and oversees their procedural conduct until their tasks are completed.
The Center also appoints Board members if one or both parties fail to appoint the sole member or any of the three adjudicators, as required.
Additionally, the Center ensures compliance with ethical principles by Board members and parties through a Code of Ethics containing provisions to ensure ethical conduct.
The Center resolves any challenges raised by parties against a bidder according to specific procedures and timelines.
Furthermore, the Center provides logistical support, a procedural manager, and all necessary physical and digital infrastructure to enable Board members and parties to conduct their work effectively. By handling administrative matters, the Center ensures that adjudicators act neutrally, allowing parties and Board members to focus on preventing and resolving disputes arising from the project.
For further information and inquiries about Dispute Resolution Boards, please email:
