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FIDIC - Red Book: Dispute Board as a Agency - FIDIC MDB 2010

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For FIDIC MDB 2010 - Instead of appointing single member or 3 members for a DB (Sub-Clause 20.2) can the Employer choose to directly employ an agency rather than an Individual who does all those DB works. So, this so called member(s) will ultimately represent the Agency and he gets all the technical support required from the Agency to carry his duties as a member. In this way, the Employer can solve the issues initially and effectively preventing any further disputes. It might be expensive but considering long run it might be effective too.

If so, does any one have such real time projects to refer; if an enquiry need to be floated to carry such operations - what should a pre-qualification document requirements look like.

Any thoughts on this please.
asked Feb 22 in Construction Contract Red Book by sridhar (140 points)  

1 Answer

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What you are outlining is not a DAB process (or now a DAAB process under FIDIC). You are suggesting something more like adjudication the UK where a nominating body picks an appropriate decision maker for a particular dispute and the parties just choose the nominating body.

There is certainly a role for that type of approach (though there needs to be some cautions as some jurisdictions will not recognise any answer so produced) but it is not a DAB. The main advantage of a DAB is that it grows with and learns the project as it is built where you have a standing Board, using an agency would detract from that accumulation of knowledge. If you had an ad hoc board (ie one appointed only once a dispute arose) then you do effectively have the agency format but you have lost many of the advantages of the DAB.
answered Feb 27 by Rob Horne Panel Members (19,700 points)  
Dear Rob Horne
To be more clear, the Agency will be behind the nominated member or person. They will be growing and learning as the project is built. So, the Agency performs all the functions of the member as it is but that member will get all supporting hands from the Agency as and when needed. In this way, the member can take appropriate decisions within the required durations without any need to go further with the Arbitration Process. I mean to say to prevent further disputes as the Agency will have required technical experience in all fields rather than in 1 specific field (which a member generally poses). So, the need for Adjudication is prevented and amicable settled.