Construction Law/FIDIC 2010

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Question
kindly expalin the procedure of making dispute resolution board



imran sattar

Answer
Dear Imran

Thanks for your question. I will try to briefly explain the procedure for the appointment of Dispute Board under FIDIC MDB Harmonized edition 2010. Under Fidic 2010, all disputes are to be referred to the Dispute Board (DB)to be appointed by the parties by the date stated in the Contract Data. However, the appointment is generally delayed which is not a good practice.

The DB may comprise a single member or three members. Sub Clause 20.2 of the Conditions of Contract spells out the procedure for the appointment of the DB members. For a single member DB, both the parties shall agree on a single member jointly nominated. It can be picked from a list of potential candidates (if any)given/ agreed and included in the Contract Data or can be a Professional in the relevant field of construction having knowledge about contractual interpretation. In case of a 'Three Member DB', each party shall nominate one member for the approval of the other party. The first two members,thus nominated and approved, shall then recommend a third member to be the Chairman of the DB, and the parties shall agree to the recommendation. The members shall be fluent in the language of communication mentioned in the Contract, shall be a professional in the field of construction involved and shall have knowledge of interpretation of contract documents.

In case the parties do not agree on the appointment of a member or the chairman, then the matter shall be referred to the Appointing Authority (sub Clause 20.3) mentioned in the Contract Data, who after consultation with the parties, shall appoint the member which decision shall be final and conclusive. In Pakistan, we generally mention 'Pakistan Engineering Council' as the Appointing Authority.

Each Member including the chairman shall then enter into separate tripartite General Conditions  of Dispute Board Agreements with the parties to agree upon the remuneration and other terms. A suggested sample form of this agreement is annexed to the Contract Document, which may be amended to suit the requirements.

The Dispute board is said be constituted upon the signing of the tripartite agreements and is notified to all concerned. There upon all dispute are referred to the Dispute Board.

I hope this answers your question. However, you are always welcomed for any further clarification. I think you have still not read this answer. Please read it, rate it and if you need any clarification, kindly feel free to ask again.  

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Abdul Majid Khan

Expertise

I am interested in questions related to time Extension, Liquidated Damages,variations, price adjustments,payments, disputes and Dispute Board under FIDIC IV, FIDIC 1999 and FIDIC 2006 Harmonized Documents.

Experience

I have been heading the Construction Management Division and Contract Divisions of National Engineering Services Pakistan (PVT) Limited, NESPAK, the largest Consulting Engineering Firm in Pakistan, for more than seven years and two years respectively. I have also worked as "The Engineer" on a number of projects. I have been working in Saudi Arabia for about seven years on a road projects. Additionally I worked as Arbitrator and am member of few Dispute Boards in individual capacity on Asian Development Bank funded projects.

Organizations
Inland and in Middle East. I have worked with National Engineering Services Pakistan (Pvt) Limited (NESPAK)as my Employer for more than 27 years in Pakistan. In Saudi Arabia I worked for Rashid Engineering, Consulting Engineers during 80s. After retirement I provided advisory services to NESPAK on technical and contractual matters to its various divisions and lately I was appointed as Advisor to Managing Director NESPAK on Technical and Contractual matters. Currently I work as Free Lance Contract Specialist on Fidic Form of Contracts.

Education/Credentials
I am a graduate with a B.E (Civil Engineering) degree. My year of graduation is 1970.

Awards and Honors
A few appreciation Letters and Honorariums during my service in NESPAK. I remained member of Administrative Committee and Board of Management of NESPAK. I had been part of the Management Committee in the absence of Managing Director.

Past/Present Clients
Most of the Clients used to be Government Departments, Corporations and Authorities. In Saudi Arabia the Client was Ministry of Communications. As Arbitrator and Dispute Board (DB) member, I provide services to various Government Departments and Contractors.

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