The FIDIC Practice Note On Dispute Boards – Lessons For Canada

Construction and infrastructure projects are complex endeavors with numerous inherent challenges and risks. Delays, cost overruns, and disputes are commonplace in the industry. Recognizing the need for effective dispute resolution mechanisms, the International Federation of Consulting Engineers ("FIDIC") has recently published a practice note on dispute avoidance strategies on construction projects, with a focus on the use of dispute boards (the "Practice Note" – availablehere). In this article, we review the principles and practices of dispute avoidance outlined by FIDIC, and consider their applicability to the Canadian construction industry.

Background

As readers know, construction projects involve extensive time and cost commitments, often to an extent far beyond other types of contractual relationships. The competitive tendering process, project-specific designs, and the involvement of multiple stakeholders compound this complexity¹, creating a fertile