A Dispute Review Board (DRB) is a low cost Alternative Dipsute Resolution (ADR) technique. 

A DRB is established as part of the contract. The DRB usually consists of 3 members, each of whom are experienced in dispute management and the particular technology relating to the contract, and as a result of continuous involvement become familiar with the actual project and the parties.

The DRB minimises the economic and political impact to enable dispute resolution at an early stage in the dispute process.

It achieves this by early intervention, trust between parties and the DRB knowledge of the project and the particular circumstances

How is a DRB Formed?

Each party nominates its own representative. The other party has right of veto. The nominee must have experience in dispute resolution and the technology (or subject matter) associated with the project. Once appointed, the nomiees act independently of the parties. The nominees appoint a third person as Chairman, or the Chairman is appointed by a nominating authority such as the National Technology Dispute Centre.

How Does it Work?

The DRB operates under rules specified in the contract. Usually these rules are the rules of a nominating authority such as the National Technology Dispute Centre.

At the commencement of the project, the DRB meets and is provided with sufficient project documentation to enable them to become familiar with the project deliverables, schedules, budgets, risks and issues. The DRB meets on a regular basis, usually on site and usually with representatives from the parties’ project teams.

When a dispute or issue is referred to the DRB, the DRB considers the dispute and makes a recommendation. Unless a party objects within a set period of time, the recommendation becomes binding under the contract.

If a party objects the dispute may be referred to other resolution mechanisms, usually litigation. The recommendations of a DRB are usually “with prejudice”. That is, the recommendations can be used by a party during litigation.

What are the Benefits?

The key benefit of a DRB is the reduced cost of dispute resolution. Disputes are generally resolved amicably and within the context of the project and the technology.

Disputes and issues are resolved quickly and efficiently enabling the project to proceed and meet timelines and delivery promises. By having a body, appointed by the parties to oversee disputes, the trust between parties is enhanced.

Recent research has shown that in excess of 97% of disputes are resolved amicably throiugh the DRB process.

How Much Does it Cost?

There are two costs associated with a DRB. The first is the initial set up cost. This provides the parties with the structure within which to establish the DRB. The set up cost includes a license to use the DRB Rules, the clauses to add into a contract and a nominating authority to appoint members if the parties can not.

The second cost is the monthly retainer for each DRB member. For most large projects this is equivalent to 2-3 man days for each member per month. For smaller projects it can be as low as 1 man day for each member per month.

How do I make it happen for my Project?

To establish a DRB, contact the National Technology Dispute Centre, or H.J Elliott & Associates (a member of the NTDC).

You will then meet with a consultant who will help you set up the DRB. The consultant will work with you to understand the project and identify the most appropriate members.