Dispute Review Board (DRB)

A Dispute Review Board (DRB) is an independent panel appointed at the start of a major construction or infrastructure contract to make site visits, stay informed of project progress, and issue non-binding recommendations when a dispute is referred to it, with the aim of resolving problems early and cheaply.

What is a DRB?

The DRB model originated in the 1994 FIDIC Orange Book and was widely used in large civil engineering contracts financed by international lenders before the binding dab mechanism became the default. Like a DAB, the DRB consists of one or three independent experts appointed by agreement between the employer and the contractor, who make periodic site visits and receive regular project reports so they stay familiar with the work. When a dispute is referred, the board meets with the parties, reviews the documents, and issues a written recommendation, typically within 56 to 84 days. The key distinction from a DAB is that a DRB recommendation is not immediately binding: either party may reject it and proceed directly to arbitration-international without being required to implement the recommendation first.

In practice, DRB recommendations are often accepted and settle the dispute, because the board's familiarity with the project gives its views practical authority even without legal force. Some contracts combine DRB and DAB functions, and the World Bank's 2017 standard conditions moved fully to the DAAB model, which adds a formal avoidance mandate and binding decisions.

Why a DRB matters for bidders

A DRB clause tells a supplier that disputes will receive a rapid, expert assessment from people who know the project, which is far faster and less expensive than arbitration. For a contractor, the value is partly in the deterrent effect: an employer is less likely to maintain an unreasonable position when an independent panel has recommended in the contractor's favour, even if that recommendation is technically non-binding. Suppliers should treat the DRB as a resource to be used, not a formality to be bypassed, because rejecting a recommendation that later proves correct in arbitration can carry reputational and costs consequences. Record-keeping matters as much here as in a DAB context: the board works from project documents, so well-kept site records, correspondence, and cost files strengthen any referral.

FAQ

What is the main difference between a DRB and a DAB?

A DRB issues non-binding recommendations that either party may accept or reject, while a DAB issues binding decisions that both parties must implement immediately, even if one party then challenges the decision in arbitration.

How is a DRB appointed?

Each party typically nominates one member and the two nominees agree on a third who chairs the board, with the nominations made at or shortly after contract award so the board is in place before disputes arise.

Are DRBs still used in MDB-financed projects?

DRBs appear in some older or privately financed infrastructure contracts, but the major multilateral development banks now generally use the DAB or DAAB model from the 2017 FIDIC suite, which provides binding rather than advisory decisions.