The FIDIC DAB Agreement: An Overview
The FIDIC DAB Agreement is a commonly used document in international construction contracts. It is a dispute resolution mechanism that stands for Dispute Adjudication Board. This agreement is an alternative to traditional dispute resolution methods such as litigation and arbitration.
The FIDIC DAB Agreement was first introduced by the International Federation of Consulting Engineers (FIDIC) in 1995, and has since been used in many construction contracts around the world. It is used to provide a quick and effective resolution of disputes that may arise during the construction phase of a project.
The DAB is a panel of one or three professionals who are appointed to make decisions on disputes that arise during the course of a construction contract. The panel will investigate the dispute, listen to both parties, and then make a decision based on the evidence presented.
One of the benefits of the FIDIC DAB Agreement is that the panel`s decision is binding on both parties. This means that both parties are required to abide by the decision, which helps to ensure that disputes are resolved quickly and efficiently.
Another benefit of the FIDIC DAB Agreement is that it is designed to be used during the course of a project, rather than at the end of the project. This means that disputes can be resolved quickly and without delaying the completion of the project.
The FIDIC DAB Agreement also includes a provision for appeals. If one of the parties disagrees with the decision of the DAB, they can appeal to an arbitrator or court of law.
In addition to dispute resolution, the FIDIC DAB Agreement also includes provisions for payment and variations. These provisions help to ensure that the project runs smoothly and that both parties are aware of their responsibilities.
In conclusion, the FIDIC DAB Agreement is a valuable tool for international construction contracts. It provides a quick and effective way of resolving disputes, which helps to ensure that projects are completed on time and within budget. If you are involved in an international construction project, it is important to consider including the FIDIC DAB Agreement in your contract.