What is the purpose of the Dispute Review Board?
The primary function of the Dispute Review Board (or Dispute Avoidance Board) is to assist the parties to a professional services or construction, building or engineering contract to avoid a formal dispute process by:
- facilitating and improving communication; and
- encouraging the resolution (or narrowing) of contentious issues by the parties before they become a contractual dispute;
- to assist the contracting parties to resolve disputes quickly and cost effectively without the need for adjudication, arbitration or litigation; and
- to provide the parties with an independent opinion of their respective rights and obligations before considering a formal dispute resolution process.
In the first instance, the Dispute Review Board informally assist the parties (if they so require) to resolve any disagreements which arise during the course of the contract.
The Dispute Review Board can make recommendations or provide an independent opinion and recommendations on technical or contractual issues referred to them by any of the contracting parties. The reality is, every party to a contractual or technical dispute always proceed with the view that they have a very strong case.
The primary advantage of a standing Dispute Review Board (as opposed to an ad hoc Dispute Review Board) is that, whenever a dispute arises, the members of the Dispute Review Board will have a high degree of knowledge of, and familiarity with:
- THE PROJECT;
- ITS CONTRACTUAL CONTEXT AND
- ITS PROGRESS.
This will enable the Dispute Review Board to assist the parties informally by providing recommendations, or if required, to an independent opinion within a relatively short period of time.