Dispute boards—what are the advantages and disadvantages?


Produced in partnership with Clyde & Co LLP
Practice notes

Dispute boards—what are the advantages and disadvantages?


Produced in partnership with Clyde & Co LLP

Practice notes
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The use of Dispute boards can hold considerable benefits in certain circumstances or with certain contract types, but they are not a panacea for all forms of dispute. In this Practice Note we consider the pros and cons of the use of dispute boards.

Cost issues

One of the most important issues for the parties will be the cost of employing a dispute board, and whether this will represent value for money.

Clearly, a standing dispute board will be more expensive than an ad hoc board, as the board members will have to be paid a retainer to cover their time in understanding the background of the project, keeping up to date with progress and making regular site visits, which will be additional to the cost of dealing with any Disputes which are referred to them. An ad hoc dispute board will be cheaper, as it will only be convened when a dispute arises. See Practice Note: Dispute boards—what are they and where are they used? (Ad hoc or standing dispute board?).

However,

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Jurisdiction(s):
United Kingdom
Key definition:
Dispute board definition
What does Dispute board mean?

A body formed pursuant to the provisions of a building contract (eg fidic contracts) which has authority to decide disputes referred to it by the parties to the contract. The extent of the dispute board’s powers, its procedures and its ability for its decisions to bind the contracting parties will be set out in the contract. There are two types of dispute boards—a dispute review board and a dispute adjudication board (the latter is able to issue binding decisions). See subtopic: Dispute Boards.

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