Dispute Resolution Boards scrutinised in Singapore

In this article we consider recent case law in Singapore that confirms that arbitral tribunals have an obligation to review the decisions of Dispute Adjudication Boards under Clause 20.6 of the FIDIC Conditions of Contract for Construction before declaring them final.

The Case

In CRW Joint Operation v PT Perusahaan Gas Negara (Persero) TBK [2011] SGCA 33, Indonesia's state-owned gas company, Perusahaan Gas Negara (PGN), had hired Indonesian Joint Venture (CRW) to design, procure, install, test and pre-commission an optical fibre cable in Indonesia (the Contract).

The Contract adopted standard "conditions of contract" set out in the 1999 FIDIC Red Book.  Standard FIDIC forms of contracts contain requirement for disputes to be referred to a Dispute Adjudication Board (DAB) for its decision in the first instance.