What is the legal effect of a Dispute Review Board opinion or recommendation?
A Dispute Review Board’s opinion and recommendations may be either non-binding, or binding. It is for the parties to decide whether they will regard the opinions and recommendations as binding or non-binding.
The very essence of the value of Dispute Review Board is to prevent disputes by providing a means of resolving a dispute in the first instance to enable the project to continue, even if following later arbitration or litigation, the result may be reversed or modified in some way.
A Dispute Review Board’s decision is not an arbitral award capable of enforcement, nor does it have the status of a court judgment. Accordingly, a decision is only binding as a matter of contract between the parties if it was obtained for the purpose of an opinion, recommendation or amicable settlement proceedings.
However, if the Dispute Review Board is appointed for the purpose of Adjudication or Arbitration, then the decision of the Dispute Review Board Person will be binding on the parties to the extent as stated in the conditions of contract, and the associated Adjudication and Arbitration rules provided for in the contract.