Clarifying Singapore's Arbitration Law And Enforcing FIDIC Dispute Adjudication Board Decisions

A recent decision of the Singapore Court of Appeal confirms that interim awards made under Singapore's International Arbitration Act (IAA) are final and enforceable. The decision is also significant as it confirms that a dispute adjudication or avoidance board (DAB) decision made under the 1999 FIDIC Red Book Conditions of Contract for Construction (the "Red Book") must be complied with, and promptly, thereby reinforcing the "pay now, argue later" principle central to the DAB procedure.

Brief background

The subject matter of the Singapore Court of Appeal's decision in PT Perusahaan Gas Negara (Persero) v CRW Joint Operation (Indonesia) [2015] SGCA 30 ("Perusahaan") related to a dispute that had arisen between PT Perusahaan Gas Negara ("Persero") and CRW Joint Operation (Indonesia) ("CRW"). The dispute had arisen from variation claims made by CRW under a 1999 FIDIC Red Book contract ("Contract") for the design, procurement, installation, testing and