Dispute Review Boards can informally assist the parties (if they so require) to resolve any disagreements which arise during the course of the contract works. The members can make recommendations or decisions regarding issues and disputes referred to them by any of the contracting parties.
The primary function of Dispute Review Boards is to assist the parties to a construction contract avoid disputes by:
- Facilitating and improving communication; and
- Encouraging the resolution of contentious issues by the parties at the job level before they become disputes; or
- If the issue cannot be resolved at job level, to assist the contracting parties to resolve disputes quickly and cost effectively without the need for arbitration or litigation.
The primary advantage of a standing Dispute Review Board (as opposed to an ad hoc appointment of an adjudicator or arbitrator) 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,
To be effective, Dispute Review Board members must:
- be experienced in the type of project being undertaken;
- have a thorough knowledge of relevant contractual issues;
- be respected for their experience and expertise; and
- Be impartial and independent.