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Publication date: 26 September 2024

Jakob B Sørensen

In general, all differences between the Employer and the Contractor are firstly addressed by the Engineer, usually under Sub-Clause 3.7 [Agreement or Determination]; if the…

Abstract

In general, all differences between the Employer and the Contractor are firstly addressed by the Engineer, usually under Sub-Clause 3.7 [Agreement or Determination]; if the Parties have confidence in the Engineer’s capability to act fairly, many differences will be finally settled under the Sub-Clause 3.7 procedure. However, if either of the Parties is dissatisfied with a determination by the Engineer, a Notice of Dissatisfaction (a NOD, see Sub-Clause 1.1.57) can be filed; thereafter, either Party may proceed in accordance with Sub-Clause 21.4 [Obtaining DAAB’s Decision], see Sub-Clause 3.7.5 [Dissatisfaction with Engineer’s determination]. The dispute resolution procedure under the 2017 edition is outlined in Figure 20B. The first two Sub-Clauses of Clause 21 [Disputes and Arbitration] deal with the formation of the Dispute Avoidance/Adjudication Board (Sub-Clause 21.1 [Constitution of the DAAB]), including how to move forward with the DAAB if either of the Parties fail to appoint a member of the DAAB (Sub-Clause 21.2 [Failure to Appoint DAAB Member(s)]). Sub-Clause 21.3 [Avoidance of Disputes] describes the DAAB’s role in avoiding the escalation of any issues or disagreements into Disputes. Sub-Clause 21.4 [Obtaining DAAB’s Decision] outlines the procedure before the DAAB in respect of the resolution of Disputes. Sub-Clause 21.5 [Amicable Settlement] includes an invitation for the Parties to resolve disagreements about a decision from the DAAB amicably, while Sub-Clause 21.6 [Arbitration] provides the ultimate procedure for resolution of Disputes, arbitration. Sub-Clause 21.7 [Failure to Comply with DAAB’s Decision] entitles either Party to refer the failure of the other Party to comply with a decision from the DAAB. Finally, Sub-Clause 21.8 [No DAAB In Place] outlines the procedure to follow if no DAAB is in place when a Dispute arises (the Dispute may be referred directly to arbitration).

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FIDIC Yellow Book: A Companion to the 2017 Plant and Design-Build Contract, Revised Edition
Type: Book
ISBN: 978-1-83608-164-7

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