Dispute Adjudicators

FIDIC Contract Management

Dispute Adjudication Boards for MCA Projects

How a standing Dispute Adjudication Board (DAB) helps MCAs prevent disputes, build stronger contractor relationships, and protect project outcomes.

1

What is the Role of a Good Adjudicator for MCA?

A good dispute adjudicator does far more than resolve disagreements after they arise. For MCA projects, the adjudicator’s primary value is preventive — helping build the capacity of the MCA as an Employer and strengthening the working relationship between the MCA and the Contractor so that disputes are avoided in the first place and the project can be delivered successfully.

Why this matters for MCAs: MCAs are new Employers — often working for the first time with international contractors who may themselves be operating in an unfamiliar market. Neither party has an established working relationship, and both may be adjusting to new regulatory environments, procurement cultures, and communication norms. This combination of unfamiliarity on both sides creates fertile ground for misunderstandings and contested claims. A good adjudicator recognizes this dynamic and works proactively to reduce friction before it escalates.


2

Standing Board or Ad-Hoc?

IPM recommends a standing board. A standing Dispute Adjudication Board is appointed at the start of the contract and remains in place for the life of the project — rather than being assembled only after a dispute has already occurred.

With a standing board, the adjudicator can visit the site regularly, observe conditions firsthand, get to know both parties, and provide non-binding opinions on emerging issues. These informal opinions often prevent contested claims from developing in the first place, because potential problems are identified and addressed early — before positions harden.

The cost case is clear: The expense of maintaining a standing DAB is quickly recouped in savings to the Employer on claims, variations, and the staff time that would otherwise be consumed managing disputes. Prevention is almost always cheaper than resolution.


3

One-Person Board or Three?

For MCA infrastructure projects valued under $100 million USD, it is standard practice to appoint a one-person board. A single adjudicator offers several practical advantages: scheduling is simpler, costs are lower, and — critically — a one-person board can more easily provide non-binding opinions and make quarterly site visits to assess conditions and identify potential claim events before they materialize.

For larger or more complex programs, a three-person board may be appropriate to ensure a broader range of technical expertise. Your MCC sector lead or IPM can advise on which structure fits your project.


4

How Should an MCA Select a DAB?

Qualified dispute adjudicators can be found through established professional lists. The two most relevant sources for MCA projects are:

The FIDIC President’s List of Approved Dispute Adjudicators — a curated roster of certified professionals with extensive experience in FIDIC contract disputes worldwide.

The Dispute Resolution Board Foundation (DRBF) — a nonprofit organization dedicated to promoting the dispute board process globally. The DRBF can help MCAs source names of adjudicators who have relevant project experience, language capabilities, and the right methodology orientation — specifically, adjudicators focused on capacity building, dispute reduction, and resolution rather than a purely legalistic approach. The DRBF can also help match adjudicators with relevant regional and location experience.

What to look for: Prioritize adjudicators who see their role as helping the parties work together effectively — not just ruling on disputes after the fact. The best adjudicators for MCA projects are those who bring a capacity-building mindset and have experience working in development contexts or emerging markets.


5

How Are DABs Paid For?

All costs associated with the Dispute Adjudication Board are shared equally between the Employer (MCA) and the Contractor — each party pays half. In practice, the Contractor typically pays the DAB’s fees directly and then bills the MCA for its 50% share through the construction contract.

The best approach is to make the DAB appointment cost-neutral to the project budget by placing a fixed amount for DAB services in the contract at the outset. This avoids surprises, simplifies financial management, and ensures neither party has a reason to delay or resist the appointment.


6

How Should You Engage the DAB Once Hired?

Once the DAB is appointed, take advantage of the relationship early — don’t wait for a dispute to arise.

Early engagement: Invite the adjudicator to the Employer’s office at the start of the contract. With both the MCA and the Contractor present, the adjudicator can share their experience of what happens when projects go wrong — disputes, arbitration, cost overruns, relationship breakdowns — and present concrete behaviors that both parties can adopt now to reduce those risks. This early session sets the tone for a collaborative, dispute-avoidance culture from day one.

Quarterly site visits: The adjudicator should visit the project site quarterly to tour the works, understand current conditions, observe progress, and identify emerging issues. These regular visits ensure the adjudicator stays current with the realities on the ground and can provide timely, informed non-binding opinions when questions or tensions arise between the parties.

The goal is simple: Build a relationship with the adjudicator before you need one for a dispute. When both parties know and trust the adjudicator, and when the adjudicator understands the project intimately, the path to resolving any future disagreement is shorter, cheaper, and less adversarial.


Need help selecting or engaging a Dispute Adjudication Board for your project? The IPM team can advise on structure, sourcing, and contract provisions.

Contact us at tkachm@mcc.gov