Dispute Avoidance Revised Roles in FIDIC 2017 Edition

Dispute avoidance is a key focus in the 2017 edition of FIDIC contracts. These updates emphasize preventing disputes before they arise. The roles of the Dispute Avoidance/Adjudication Board (DAAB) and the Engineer were revised to promote early intervention and proactive resolution.

Dispute Avoidance/Adjudication Board (DAAB)

The 2017 edition introduced the DAAB to replace the earlier Dispute Adjudication Board (DAB). The DAAB’s role is to prevent disputes, not just resolve them.

Key Functions of the DAAB

Continuous Involvement: The DAAB is appointed at the project’s start. It gives advice and guidance throughout, helping avoid conflicts.
Proactive Role: The DAAB works with both the employer and contractor, offering early intervention before disputes escalate. This helps identify issues early and resolve them through negotiation.
Regular Meetings: The DAAB conducts site visits and meetings, staying updated on project progress. This ongoing involvement allows the DAAB to provide effective advice and prevent disputes.

Advantages of the DAAB

Cost and Time Savings: Avoiding disputes reduces the costs and delays of formal procedures.
Improved Collaboration: Continuous engagement fosters better relationships between the employer and contractor.
Fewer Formal Disputes: The DAAB’s early involvement greatly lowers the chances of formal claims.

Revised Role of the Engineer

The Engineer’s role in FIDIC 2017 has also changed to support dispute avoidance. The Engineer must now act impartially and work to resolve conflicts early.

Key Changes in the Engineer’s role

Impartiality: The Engineer is required to act fairly. This prevents bias and helps create trust between the parties.
Clause 3.7 – Agreement or Determination: The Engineer must first help the employer and contractor reach an agreement before making a formal determination. This encourages early resolution and prevents escalation.
Early Warnings: The Engineer issues early warnings when risks arise, allowing the parties to address potential disputes immediately.
Efficient Communication: Regular communication ensures both parties are aware of progress and challenges, preventing misunderstandings.

Dispute avoidance is central to FIDIC’s 2017 updates. The roles of the DAAB and Engineer are designed to prevent disputes through early involvement and active management. These changes help improve project outcomes by reducing the need for formal dispute resolution and fostering a cooperative environment.