FIDIC & Dispute Boards

ICC/FIDIC Conference – Istanbul, Turkey, 29-30 March 2016

FIDIC & Dispute boards

François BaillonFIDIC Commercial director

Representing 1.5 million CE professionals in 100 countries


FIDIC Strategic Objectives

Represent globally the consulting engineering industry Enhance the image of consulting engineers

What FIDIC does:


Global Voice of Consulting Engineers

Be the authority on issues relating to business practicePromote the development of a global and viable consulting engineering industry

What FIDIC offers the industry:

FIDIC Strategic ObjectivesICC/FIDIC Conference – Istanbul, Turkey, 29-30 March 2016

Business Best Practice Tools

& Guidelines

Promote qualityActively promote conformance to a code of ethics and integrityPromote commitment to sustainable development

FIDIC’s governing principles:

FIDIC Strategic Objectives

Committed to Quality, Integrity

& Sustainability


How FIDIC is responding to the needs of the international construction industry :Keep the industry’s concerns on the agenda

Regular meetings as the industry’s voice The World Bank WB Asian Development Bank ADB European Bank for Reconstruction and Development EBRD Inter-American Development Bank IADB African Development Bank ADB Islamic Development Bank IDB

Strategic partnershipsJoint activities to develop business practice International Standards Organization ISO International Labour Organization ILO World Federation of Engineering Organizations WFEO United Nations Environment Program UNEP Confederation of International Construction Associations CICA Transparency International TI Federation of Consultants from Islamic Countries FCIC Organisation for Economic Co-operation and Development OECD


Works Contracts – Rainbow Collection

FIDIC publishes internationally recognized forms of contract for infrastructure and building works, suited for all delivery forms

More than 40,000 copies supplied each year, 28 languages

Adjusting to a changing context

The right Governance modelLocal Authorities / Owner / Consultant / Researcher/ Civil society

The right holistic approach

The right community

The right technology (BIM?)

The right contracting platform (ITER)The right Dispute Board Mechanism (ITER)


Updated DAB Rules to be published as a separate document :

-for consistency across the different forms of FIDIC contracts

-to allow the flexibility of improvement/revision when it becomes necessary or desirable, rather than awaiting the 3rd edition of the FIDIC contracts

FIDIC is currently planning on publishing the updated DAB Rules + DAB Agreement as a separate document to the contract documents.


http://fidic.org/books/1-year-licence-agreement

Standing DAB vs Ad-hoc DAB

16 years since DABs first featured in FIDIC contracts,

standing DABs have proven undoubtedly to be more effective

consistency if there is more than one dispute to be resolved

-the invaluable advantages of dispute avoidance -opportunity for the DAB to become part of the ‘project team’.

FIDIC is currently planning on updating the FIDIC suite of contracts such that all DABs will be standing DABs

… but option for an ad-hoc DAB in the Guidance Notes=> the Parties can decide for their own project


ADR Timeline (source : A HISTORY OF ALTERNATIVE DISPUTE RESOLUTION by Jerome T Barrett)

1800 B.C. Mari Kingdom (in modern Syria) uses mediation and arbitration in dispute with other kingdoms.

1400 B.C. Ancient Egyptian Amama system of international relations uses diplomacy.

1200-900 B.C. Phoenicians (in the eastern Mediterranean) practice entrepreneurship and negotiations.

960 B.C. Israel's King Solomon arbitrates dispute over baby by threatening to split the child.

700 B.C. Rhodian Sea Law codifies traditional rules for determining liability for ship cargo losses and dispute resolution.

500 B.C. Arbitration, called Panchayat, used in India.

400 B.C. Greeks use public arbitrator in city-states. Arbitration decisions between city-state "published" on temple columns.

300 B.C. Aristotle praises arbitration over courts.

100 B.C. Western Zhou Dynasty establishes post of mediator. 452 A.D.

452 A.D. As Attila the Hun destroyed city after city in his sweep across Europe, Pope Leo the Great successfully negotiates to spare the city of Ravenna, Rome's western capital.

1888 A.D. Arbitration Act passed. Probably the first ADR statute in the United States providing voluntary arbitration and ad hoc commissions to investigate the cause of specific railway labor disputes.

Thank [email protected]

President Jaewan Lee, KoreaVice Presidents Alain Bentejac, France

Exaud Mushi, Tanzania Secretariat FIDIC

World Trade Center 2Geneva AirportBox 311 CH-1215 Geneva 15 Switzerland Tel: +41 22 799 49 00Fax: +41 22 799 49 01

[email protected] www.fidic.org

Managing Director Enrico VinkCommercial Director François Baillon