ABSTRACT

A dispute essentially involves a disagreement. A contract, on the other hand, means an agreement. “Disagreements arising out of agreements” does sound like a contradiction in terms but is common and especially in construction contracts. The standard form contracts incorporate elaborate provisions laying down a procedure for the resolution of the disputes. The cheapest and the best mode of dispute resolution method under Alternative Dispute Resolution (ADR) is amicable settlement by direct negotiations between the disputant parties. This chapter mainly focuses on staged dispute resolution clauses in standard form contracts frequently used in the construction industry. The 1999/2017 editions of FIDIC Form incorporate some welcome additions providing for reference to arbitration any decision of Dispute Review Board (DRB)/DAAB which had attained finality but has not been honoured by the other party and direct reference to arbitration where for any reason there is no DRB/DAAB in place.