Dispute Adjudication Board (DAB)

A Dispute Adjudication Board (DAB) is a panel of one or three independent experts, appointed jointly by both contracting parties at contract inception, which visits the project periodically, stays informed about progress, and has authority to issue binding decisions on disputes referred to it within a defined timeframe, with those decisions immediately enforceable pending arbitration.

What is a Dispute Adjudication Board (DAB)?

The DAB is the mandatory first-tier formal dispute mechanism under the FIDIC 1999 Red, Yellow, and Silver Books. Its defining features are continuity and binding force. Because DAB members visit the site regularly throughout the contract, they develop project-specific knowledge that enables rapid, informed adjudication without the lengthy record-building phase required in arbitration. A party may refer a dispute to the DAB at any time, and the DAB must issue its decision within 84 days (extendable by agreement). That decision is binding and must be complied with immediately, even if a party issues a notice of dissatisfaction expressing intention to take the matter to arbitration. The "pay now, argue later" principle means that a contractor who wins a DAB decision on a payment claim can enforce that payment while the employer challenges the decision in arbitration.

The DAB differs from a dispute-review-board, which issues non-binding recommendations rather than enforceable decisions, and from mediation, which facilitates negotiated settlement. The FIDIC 2017 suite replaced the DAB with the Combined Dispute Avoidance and Adjudication Board (DAAB), which has an explicit dispute avoidance function alongside adjudication.

Why DAB matters for bidders

The DAB is a powerful tool for contractors with legitimate payment or time-extension claims because its decisions are immediately enforceable without waiting years for arbitration. If the employer refuses to comply with a DAB decision, the contractor can refer the non-compliance to arbitration as a straightforward enforcement matter, rather than relitigating the underlying merits. To take advantage of this, the contractor must: first ensure the contract includes a properly constituted DAB (not substitute a dispute review board), second refer disputes in a timely and procedurally compliant way, and third maintain the records needed to support the DAB's rapid 84-day assessment.

FAQ

What is the difference between a DAB and a DRB?

A DAB issues binding decisions that must be complied with immediately; a dispute-review-board issues non-binding recommendations that parties may accept or reject before proceeding to arbitration.

What happens if a party is dissatisfied with a DAB decision?

The dissatisfied party issues a notice of dissatisfaction within 28 days of receiving the decision and may ultimately refer the matter to arbitration. However, the decision remains binding and must be complied with during the intervening period.

Can the DAB avoid a dispute before it becomes formal?

Under the FIDIC 2017 DAAB, yes: the board has an explicit avoidance role and may assist the parties informally before a dispute is formally referred. Under the 1999 DAB, the adjudication function is primary.