FIDIC Issue Guidance On DAB Decisions

The FIDIC Contracts Committee has issued a Guidance Note dealing with the powers of, effect of and the enforcement of Dispute Adjudication Board (DAB) decisions. The purpose of the Guidance Note is to clarify clause 20 of the General Conditions in the 1999 Conditions of Contract. Clause 20 deals with claims, disputes of the DAB and arbitration. The contractual machinery at clause 20 makes a distinction between DAB decisions that are binding and those that are final and binding. There is then a dual pathway to arbitration, depending upon whether a decision has become binding or final and binding. If one party issues a notice of dissatisfaction within 28 days then the decision is simply binding. In the absence of a notice of dissatisfaction the binding decision becomes final and binding.