Dispute Adjudication Or Avoidance Board Decision Under The 1999 FIDIC Red Book

In PT Perusahaan Gas Negara (Persero) TBK v CRW Joint Operation [2015] 4 SLR 364 (SGCA) ("Perusahaan"), the Singapore Court of Appeal confirmed that interim awards made under Singapore's International Arbitration Act ("IAA") are final and enforceable. Notably, that an interim award based on a binding but non-final dispute adjudication or avoidance board ("DAB") decision made under the 1999 FIDIC Red Book Conditions of Contract for Construction (the "Red Book"), is final and enforceable.

The decision is also significant as it confirms that a DAB decision made under the Red Book must be complied with, and promptly, thereby reinforcing the "pay now, argue later" principle central to the DAB procedure. In this regard, the Singapore Court of Appeal clarified that any failure to comply with a binding but non-final DAB decision may be referred directly to arbitration without having to first attempt amicable settlement and/or allowing the period for amicable settlement to