Dispute Adjudication Board (DAB)

A Dispute Adjudication Board (DAB) is a panel of one or three independent experts appointed at the beginning of a construction contract to resolve disputes quickly and keep the works moving, with its decisions binding immediately even if a party later refers the matter to arbitration.

What is a DAB?

The DAB was introduced in the FIDIC 1999 suite of construction contracts and became the standard for disputes under World Bank and other MDB-financed infrastructure works. Unlike a court or arbitral tribunal that convenes only after a dispute has fully crystallised, a DAB is appointed at contract award and makes site visits throughout the contract period to stay familiar with the project. When a dispute arises, either party refers it to the board, which has 84 days to issue a written decision. That decision is binding: both parties must comply immediately and "promptly give effect" to it, even if one of them gives notice of dissatisfaction intending to take the matter to arbitration-international. This "pay now, argue later" principle is the central feature of the DAB mechanism and is intended to prevent disputes from halting works.

The DAB differs from the older drb in that its decisions are immediately binding, while a DRB issues recommendations that are not binding unless accepted. The 2017 FIDIC suite introduced a Combined Dispute Avoidance and Adjudication Board (DAAB) that adds a formal avoidance role to the panel's mandate.

Why a DAB matters for bidders

Suppliers bidding on large infrastructure works financed by MDBs will almost always encounter a DAB clause. Understanding the mechanism protects cash flow: if the engineer makes a determination that underpays a variation or rejects a legitimate claim, the DAB is the fastest route to a binding correction without stopping work. The practical discipline is to keep contemporaneous records of events, costs, and instructions throughout the contract, because DAB proceedings are decided on the documents and site visit observations, not on reconstruction from memory. Contractors who maintain site diaries, photo logs, and formal correspondence from day one are far better positioned to pursue or defend a DAB referral than those who assemble records retrospectively.

FAQ

Is a DAB decision final?

A DAB decision is immediately binding but not final. Either party may give a notice of dissatisfaction within 28 days, which preserves the right to take the dispute to amicable settlement and then arbitration, but the decision must still be implemented while that process runs.

Who pays for the DAB?

The cost of the DAB, including the members' fees and travel, is shared equally between the employer and the contractor unless the contract specifies otherwise, making it a shared investment in a dispute avoidance and resolution resource.

When should a contractor formally refer a dispute to the DAB?

A contractor should refer a dispute after the engineer has issued a determination under the relevant clause and either party disagrees with it, or when the engineer fails to respond within the required time, and within any time limits the contract specifies for raising disputes.