The Dispute Avoidance/Adjudication Board (DAAB) is one of the most significant changes introduced in FIDIC 2017. Replacing the Dispute Adjudication Board (DAB) from FIDIC 1999, the DAAB is designed to prevent disputes from arising — not just adjudicate them after they escalate. For contractors in the GCC, understanding how to use the DAAB process effectively can save months of delay and significant legal costs.
What is the DAAB?
The DAAB is a standing board of one or three independent and impartial members, appointed at the start of the contract and remaining in place for the entire project duration. Unlike the FIDIC 1999 DAB — which was often only appointed when a dispute arose — the DAAB is intended to be a permanent fixture from contract commencement. The board has two functions: dispute avoidance through informal assistance, advice, and site visits, and dispute adjudication through formal binding decisions when avoidance fails.
Appointment and composition
The DAAB should be appointed within 28 days of the commencement date. For contracts with a value exceeding a defined threshold, a three-member board is typical. Members must be independent, impartial, and experienced in the type of work and contract involved. Both parties must agree on the members — if agreement cannot be reached, the appointing entity named in the contract (often the President of FIDIC) makes the appointment. Each member signs a tripartite agreement with the employer and contractor covering terms, fees, and confidentiality.
Dispute avoidance: the informal process
The dispute avoidance function is the most underused aspect of the DAAB in GCC projects. The board conducts regular site visits, typically every 2-3 months, during which it can discuss potential issues with both parties, provide informal opinions on emerging disagreements, help parties reach agreement before positions harden, and identify project administration issues that could lead to disputes. These informal opinions are not binding — but they carry significant weight because they come from an experienced, neutral body that understands the project. Many disputes that would otherwise escalate to formal adjudication or arbitration are resolved at this stage.
Dispute adjudication: the formal process
If a dispute cannot be avoided, either party may refer it to the DAAB for a formal decision under Clause 21.4. The referring party submits a written referral describing the dispute, the basis for its position, and the relief sought. The other party responds in writing. The DAAB may hold a hearing, request additional information, and visit the site. The DAAB must issue its decision within 84 days of receiving the referral, unless otherwise agreed by the parties. The decision is binding on both parties — meaning it must be complied with immediately, even if either party issues a notice of dissatisfaction and proceeds to arbitration.
After the DAAB decision
If either party is dissatisfied with the DAAB decision, it must issue a Notice of Dissatisfaction (NOD) within 28 days. If no NOD is issued, the decision becomes final and binding. If an NOD is issued, the decision remains binding (it must be complied with) but the dispute may proceed to arbitration under Clause 21.6. The critical point: the losing party cannot refuse to comply with a DAAB decision while awaiting arbitration. Failure to comply gives the other party the right to refer the non-compliance itself to arbitration under an expedited procedure.
Practical tips for GCC contractors
Push for early appointment of the DAAB and do not treat it as optional or something to worry about later. Engage actively during site visits by raising potential issues early. Use the informal advisory process — it is significantly cheaper and faster than formal adjudication. Maintain comprehensive records that can be presented to the DAAB if formal adjudication becomes necessary. If you receive a DAAB decision you disagree with, comply with it and issue your NOD within 28 days. Do not ignore the deadline — a missed NOD makes the decision final.
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