GP5 | Dispute Resolution and Compliance

Study Notes

Dispute Resolution Process

All formal disputes must be referred to a Dispute Avoidance/Adjudication Board (DAAB) or a Dispute Adjudication Board (DAB) for a provisionally binding decision.
If a DAAB or DAB is not provided for in the contract, it does not comply with GP5.
GP1 must also be complied with, as the roles and responsibilities of the DAAB or DAB must allow it to carry out its functions.

Modifications Consistent with GP5

Providing that the DAAB/DAB’s decision is final and binding for disputes with a value less than a specified amount.
Permitting the DAAB/DAB to correct its decision for an arithmetical error.

Modifications Not Consistent with GP5

Deleting all the clauses in the GCs that refer to the DAAB/DAB.
Restricting the ambit of disputes that can be referred to the DAAB/DAB to exclude certain determinations of the Engineer.

Dispute Adjudication Boards (DABs) and Dispute Avoidance/Adjudication Boards (DAABs)

All formal disputes must be referred to a DAB or DAAB, unless a conflict is present with the governing law of the Contract.
The DAB or DAAB issues a provisionally binding decision, which is a condition precedent to arbitration (a condition that must be met before arbitration can proceed).
The contract must explicitly stipulate the inclusion of a DAB or DAAB to meet the requirements of GP5.
The contract must also comply with GP1, which outlines the roles and responsibilities of the DAB or DAAB.
The DAB must have sufficient powers to perform their duties as outlined in the contract.
Examples of Contract Modifications Consistent with GP5:
- Making the DAB or DAAB's decision final and binding for disputes below a specified value.
- Permitting the DAB or DAAB to correct its decision for arithmetical errors.
Examples of Contract Modifications Inconsistent with GP5:
- Deleting all clauses related to the DAB or DAAB from the contract.
- Limiting the scope of disputes that can be referred to the DAB or DAAB to exclude certain decisions made by the Engineer.

Description

This quiz covers the dispute resolution process involving Dispute Avoidance/Adjudication Boards (DAAB) and Dispute Adjudication Boards (DAB), focusing on compliance with GP5. Participants will learn about modifications consistent and inconsistent with GP5 obligations. Test your knowledge on these essential dispute resolution frameworks.