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ARTICLE · 06 JULY 2016

FIDIC DAB Enforcement - Pay Now, Argue Later Re-Affirmed

Fieldfisher
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A team from Fieldfisher LLP, led by disputes partner Colin Gibson, recently secured an enforcement of a DAB Decision in arbitration by way of a Final Partial Award after the contractor refused to pay.

GlobalReal Estate and Construction

A team from Fieldfisher LLP, led by disputes partner Colin Gibson, recently secured an enforcement of a DAB Decision in arbitration by way of a Final Partial Award after the contractor refused to pay.  

There remains uncertainty within the industry on projects let on the FIDIC 1999 suite of contracts as to how a Dispute Adjudication Board (DAB) Decision which is binding, but not final and binding, is to be enforced in the event of non-compliance. Having recently enforced such a decision for a European construction and energy contractor wishing to recover losses, there are a few clear lessons for the industry.   

The contractor was seeking to recover losses from the employer that it had suffered on an electricity cable laying project involving the extension of two power substations and the stringing of circuit transmission lines between them. The contract was let on an amended FIDIC EPC/Turnkey Contract, 1st Edition (the 'Silver Book').  The dispute resolutions

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