Granting Enforcement to the FIDIC Dispute Adjudication Board’s Decision by the Amendment of the New York Convention 1958

AbstractIn international construction contracts huge financial, technical, and human resources are involved, so in the long-term construction contracts, it is important to solve all the disputes at the site of the project as soon as possible. Because judges do not have enough knowledge in constructi...

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Published in:Journal of legal affairs and dispute resolution in engineering and construction 2021-05, Vol.13 (2)
Main Authors: Anisi, Elham, Darabpour, Mehrab
Format: Article
Language:eng
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Summary:AbstractIn international construction contracts huge financial, technical, and human resources are involved, so in the long-term construction contracts, it is important to solve all the disputes at the site of the project as soon as possible. Because judges do not have enough knowledge in construction issues, the International Federation of Consulting Engineers (FIDIC) recommended a dispute adjudication board (DAB) instead of national courts in the contracts. The DAB, and then dispute avoidance/adjudication board (DAAB) in the newest version of FIDIC construction contract (in 2017), have been proposed in FIDIC contracts. The board members are party-nominated at the time of the conclusion of the contract. They are independent, impartial, and experienced on the related contract issues. Dispute avoidance/adjudication is not discussed in this paper. This paper focuses on adjudication, which is done by DAB. The mechanism that was applicable among FIDIC users for over 18 years before the newest FIDIC contracts adopted in 2017. DAB is similar to the arbitration in essence and its decisions would be enforceable in the same way. There are some doubts whether the New York Convention will apply on the enforcement of the DAB’s decisions or not. The main question was whether it was necessary or even possible to revise the convention in the 60th anniversary of the New York Convention. There is not any international convention for the enforcement of DAB’s decisions yet. However, finding ways to enforce DAB’s decisions can develop the implementation of DAB in international construction contracts. It also motivates the parties to the long-term construction contracts to settle their disputes out of the courts or arbitral tribunals and reduce the cost of projects and increase its efficiency. This study could be a useful step toward the amendment of the convention in order to guarantee the enforcement of DAB’s decisions.
ISSN:1943-4162
1943-4170