chapter  1
32 Pages

THE DISPUTE BOARD CONCEPT

The concept of a dispute board and its benefits can be best shown by the following situation and the various methods of resolution:

During the construction of a bridge over a large river in a developing part of the country a dispute breaks out over an unforeseen ground condition which is causing delay to the project. The contractor claims that the situation was not foreseeable and as a result it has incurred an additional £500,000 and it has lost 75 days in time. It wants to be compensated and wants an extension of time to its contract for completion. The employer denies all of this and claims that the ground conditions were well known to the contractor and that it failed to review the site conditions properly before commencing work and never notified the employer, as was its responsibility, within 28 days of starting under the terms of their contract.