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Home>DAB / DRB>CAA Dispute Board

CAA Dispute Board

A Dispute Board (DB), specifically a Dispute Review Board (DRB) or Dispute Adjudication Board (DAB), can be established in accordance with a construction contract to provide a low-cost ADR method. DB minimizes the cost of dispute resolution by preventing future litigation or arbitration. Disputes are generally resolved amicably, quickly and efficiently, enabling the project to proceed and meet timelines. DB also allows the parties to resolve disputes on-site during construction. DB provides a neutral forum to discuss and resolve disputes during the construction by consulting with the parties and identifying the ways forward through proactive communications and professional recommendations or decisions.

The vital difference between DAB and DRB concerns the nature and effect of their outcomes. DRB makes non-binding recommendations to the parties, whereas DAB makes contractually binding decisions as empowered by the parties, unless and until such decisions become later overturned by agreement, arbitration or litigation.
For further information on CAA’s DAB and DRB Rules, please refer to DB Rules.
CAA promulgated its CAA Construction DRB Rules in November 2009, whilst CAA Construction DAB Rules came into force in December 2016. The process for establishing the Board and the nomination of Board members differ between DRB and DAB, however both rely on the parties’ agreement.

The general provisions of the tripartite agreement define the composition and the duration of the DRB/DAB. The agreement will set out the start date and the completion date, with a list covering the scope of work.
At the commencement of the project, the DB meets and reviews relevant documentation to enable them to become familiar with the project schedule, budgets, risks and other issues. The DB will then meet on a regular basis with representatives from the parties to monitor the construction progress.

Panel of Recommended Construction Dispute Board Members
DB members are experienced in dispute management and possess particular technical knowledge relating to the contract. CAA provides a panel of recommended construction dispute arbitrators who are highly regarded as trusted construction law specialists and experts for the parties to consider when appointing board members.
Parties are required to mutually agree before DAB/DRB mechanism in their construction projects could be employed. It is a tripartite agreement between the parties themselves, as well as between the parties and the board members. Parties who wish to establish a DB for their construction project are advised to contact the CAA Secretariat. The Secretariat will assist you in setting up the DB, discuss the estimated costs, and identify the most appropriate DB members to appoint.