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Questions and Answers

Who is responsible for coordinating site visits?

The Engineer

The Contractor

The DAB

The Employer (correct)

What is the purpose of site visits?

To resolve disputes

To monitor progress and identify problems (correct)

To conduct financial audits

To inspect completed work

Who should receive copies of the DAB's site visit report?

The Employer and the Contractor (correct)

The Project Manager

The DAB members

The Engineer only

What documents should be furnished to the DAB upon request?

All documents requested by the DAB Signup and view all the answers

How many persons should the DAB comprise for the Employer and the Contractor to send requested documents and communications to?

Three Signup and view all the answers

What is the DAB's responsibility in conducting a hearing on a dispute?

To decide on the date and place for the hearing Signup and view all the answers

What power does the DAB have in adopting an inquisitorial procedure?

To proceed in the absence of any party Signup and view all the answers

When may the DAB express opinions during a hearing concerning the merits of any arguments advanced by the Parties?

Never Signup and view all the answers

When may the DAB convene in private after a hearing?

To prepare its decision Signup and view all the answers

When does the retainer fee get reduced by 50%?

From the first day of the calendar month following the month in which Taking-Over Certificate is issued for the whole of the Works Signup and view all the answers

How often should the DAB visit the site unless otherwise agreed?

At intervals of not more than 140 days Signup and view all the answers

When should the Member submit invoices for payment of the monthly retainer and air fares?

Quarterly in advance Signup and view all the answers

What happens if the Contractor fails to pay the Member's invoices in full within 56 calendar days after receiving each invoice?

The Employer pays the amount due to the Member Signup and view all the answers

When can the Employer and the Contractor jointly terminate the Dispute Adjudication Agreement?

By giving 42 days' notice to the Member Signup and view all the answers

What happens if the Member fails to comply with any obligation under Clause 4?

The Member shall not be entitled to any fees or expenses Signup and view all the answers

What should the Member do if the Member does not receive payment of the amount due within 70 days after submitting a valid invoice?

Suspend his/her services until the payment is received Signup and view all the answers

How are disputes or claims arising from the Dispute Adjudication Agreement finally settled?

Under the Rules of Arbitration of the International Chamber of Commerce Signup and view all the answers

How long should the DAB wait between consecutive visits unless otherwise agreed?

Not less than 70 days Signup and view all the answers

How are the retainer and daily fees specified in the Dispute Adjudication Agreement adjusted after the first 24 calendar months?

By agreement between the Employer, the Contractor, and the Member at each anniversary of the date on which the Dispute Adjudication Agreement became effective Signup and view all the answers

What is the consequence if the Member fails to comply with any obligation under Clause 4 of the Dispute Adjudication Agreement?

The Member may lose fees and reimbursement of void proceedings. Signup and view all the answers

When are the retainer and daily fees specified in the Dispute Adjudication Agreement adjusted after the first 24 calendar months?

They remain fixed for the first 24 months, adjustable thereafter. Signup and view all the answers

What happens if the Contractor fails to pay the Member's invoices within 56 days after receiving each invoice?

The Employer must pay the Member and may claim reimbursement from the Contractor. Signup and view all the answers

When may the DAB convene in private after a hearing?

When the parties involved request a private meeting. Signup and view all the answers

What is the responsibility of the Contractor if the Member does not receive payment within 70 days after submitting a valid invoice?

The Contractor must seek reimbursement from the Employer. Signup and view all the answers

How often should the DAB visit the site unless otherwise agreed?

The frequency of site visits is not specified. Signup and view all the answers

Who is responsible for coordinating site visits?

The Employer Signup and view all the answers

What documents should be furnished to the DAB upon request?

All documents and communications relevant to the dispute. Signup and view all the answers

When can the Employer and the Contractor jointly terminate the Dispute Adjudication Agreement?

Only after the first 24 months of the agreement. Signup and view all the answers

How are disputes or claims arising from the Dispute Adjudication Agreement finally settled?

By referral to the Rules of Arbitration of the International Chamber of Commerce. Signup and view all the answers

What expenses are covered by the retainer fee in the Dispute Adjudication Agreement?

All office and overhead expenses including secretarial services, photocopying, and office supplies Signup and view all the answers

Under what circumstances should the Employer or the Contractor provide security for the Member?

When referring a dispute to the DAB under SubClause 20.4 of the Conditions of Contract Signup and view all the answers

What is the purpose of the retainer fee in the Dispute Adjudication Agreement?

Payment for being available on short notice for site visits and hearings Signup and view all the answers

What should the Employer or the Contractor provide security for when referring a dispute to the DAB?

A sum equivalent to the reasonable expenses to be incurred by the Member Signup and view all the answers

What is the primary responsibility of the DAB in conducting a hearing on a dispute?

Adopting an inquisitorial procedure Signup and view all the answers

When does the retainer fee cover payment for all services performed by the Member?

Except those referred to in subparagraphs (b) and (c) of the Clause Signup and view all the answers

What expenses are NOT covered by the retainer fee in the Dispute Adjudication Agreement?

Services referred to in subparagraphs (b) and (c) of the Clause Signup and view all the answers

Under what condition is the Employer and the Contractor relieved from liability under the preceding paragraph?

Claims from which the Member is relieved from liability Signup and view all the answers

What is the purpose of the security provided by the Employer or the Contractor when referring a dispute to the DAB?

To cover the reasonable expenses to be incurred by the Member Signup and view all the answers

What is the primary responsibility of the Member under the Dispute Adjudication Agreement?

Being available on 28 days' notice for all site visits and hearings Signup and view all the answers

Study Notes

Dispute Adjudication Agreement: Key Details

Retainer fee begins from the last day of the month when the agreement is effective until the issuance of the Taking-Over Certificate for the Works.
After the issuance of the Taking-Over Certificate, the retainer fee is reduced by 50% and continues until the Member resigns or the agreement is terminated.
Daily fee covers travel time, on-site visits, hearings, and preparation, with reasonable expenses reimbursed.
The retainer and daily fees are specified in the Dispute Adjudication Agreement and remain fixed for the first 24 months, adjustable thereafter.
Invoices for the monthly retainer and air fares are submitted quarterly in advance, while other expenses and daily fees are invoiced after each site visit or hearing.
The Contractor must pay the Member's invoices within 56 days and seek reimbursement from the Employer.
If the Contractor fails to pay, the Employer must pay the Member and may claim reimbursement from the Contractor.
If the Member does not receive payment within 70 days, they can suspend services or resign the appointment.
Termination of the agreement requires notice from both the Employer and the Contractor, or from the Member alone in specific circumstances.
Failure to comply with the agreement by the Member may result in loss of fees and reimbursement of void proceedings.
Disputes arising from the agreement will be settled under the Rules of Arbitration of the International Chamber of Commerce.
The Dispute Adjudication Board (DAB) shall visit the site at specified intervals and may convene a hearing if required.

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Test your knowledge of the key details in a Dispute Adjudication Agreement, including retainer and daily fees, invoicing procedures, termination conditions, and dispute resolution mechanisms.

R 99 - 13

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Podcast

Questions and Answers

Who is responsible for coordinating site visits?

What is the purpose of site visits?

Who should receive copies of the DAB's site visit report?

What documents should be furnished to the DAB upon request?

How many persons should the DAB comprise for the Employer and the Contractor to send requested documents and communications to?

What is the DAB's responsibility in conducting a hearing on a dispute?

What power does the DAB have in adopting an inquisitorial procedure?

When may the DAB express opinions during a hearing concerning the merits of any arguments advanced by the Parties?

When may the DAB convene in private after a hearing?

When does the retainer fee get reduced by 50%?

How often should the DAB visit the site unless otherwise agreed?

When should the Member submit invoices for payment of the monthly retainer and air fares?

What happens if the Contractor fails to pay the Member's invoices in full within 56 calendar days after receiving each invoice?

When can the Employer and the Contractor jointly terminate the Dispute Adjudication Agreement?

What happens if the Member fails to comply with any obligation under Clause 4?

What should the Member do if the Member does not receive payment of the amount due within 70 days after submitting a valid invoice?

How are disputes or claims arising from the Dispute Adjudication Agreement finally settled?

How long should the DAB wait between consecutive visits unless otherwise agreed?

How are the retainer and daily fees specified in the Dispute Adjudication Agreement adjusted after the first 24 calendar months?

What is the consequence if the Member fails to comply with any obligation under Clause 4 of the Dispute Adjudication Agreement?

When are the retainer and daily fees specified in the Dispute Adjudication Agreement adjusted after the first 24 calendar months?

What happens if the Contractor fails to pay the Member's invoices within 56 days after receiving each invoice?

When may the DAB convene in private after a hearing?

What is the responsibility of the Contractor if the Member does not receive payment within 70 days after submitting a valid invoice?

How often should the DAB visit the site unless otherwise agreed?

Who is responsible for coordinating site visits?

What documents should be furnished to the DAB upon request?

When can the Employer and the Contractor jointly terminate the Dispute Adjudication Agreement?

How are disputes or claims arising from the Dispute Adjudication Agreement finally settled?

What expenses are covered by the retainer fee in the Dispute Adjudication Agreement?

Under what circumstances should the Employer or the Contractor provide security for the Member?

What is the purpose of the retainer fee in the Dispute Adjudication Agreement?

What should the Employer or the Contractor provide security for when referring a dispute to the DAB?

What is the primary responsibility of the DAB in conducting a hearing on a dispute?

When does the retainer fee cover payment for all services performed by the Member?

What expenses are NOT covered by the retainer fee in the Dispute Adjudication Agreement?

Under what condition is the Employer and the Contractor relieved from liability under the preceding paragraph?

What is the purpose of the security provided by the Employer or the Contractor when referring a dispute to the DAB?

What is the primary responsibility of the Member under the Dispute Adjudication Agreement?

Study Notes

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