INSIGHTS
What Is a DAAB, and Why Does It Matter?
The Dispute Avoidance/Adjudication Board in FIDIC contracts: what it does, how a dispute moves through it, and how to make it work on your project.
Clear Axis · 3 min read
DAAB stands for Dispute Avoidance/Adjudication Board. In the FIDIC 2017 contracts it is a panel of one or three independent members appointed for the project, set out in Clause 21. Earlier editions had a Dispute Adjudication Board (DAB). The new name puts avoidance first, and that is the point: the board is meant to stop disagreements from becoming disputes.
Two jobs
Avoiding disputes. A standing DAAB follows the project from the start. It receives progress information, can visit the site, and the parties can jointly ask it for informal help with an issue before it hardens (Sub-Clause 21.3).
Deciding disputes. If a dispute is referred, the DAAB gives a written, reasoned decision, normally within 84 days of the referral (Sub-Clause 21.4). The decision is binding at once and the parties must comply with it, even if one of them later challenges it in arbitration. The work continues while the argument is resolved.
How a dispute moves through the DAAB
1. A claim goes through the Engineer's agreement or determination (Sub-Clause 3.7).
2. A party that is unhappy with the determination gives a Notice of Dissatisfaction within 28 days.
3. The dispute may then be referred to the DAAB, within 42 days of that notice.
4. The DAAB gives its decision, normally within 84 days.
5. A party that disagrees gives a Notice of Dissatisfaction within 28 days of the decision; otherwise the decision becomes final and binding.
6. The parties then have a period to try amicable settlement before arbitration can start.
Why it matters
Delay, cost and defect disputes can stall a project for years if they go straight to arbitration. A board that already knows the project, its people and its records can decide quickly and on the technical facts. Many disagreements never become formal disputes because the board raised them early.
Speaking at the Modern Buildings Summit in Dubai, Eng. Haitham Mokhtar described the shift from adversarial arbitration to proactive technical resolution, including mediation and standing DAABs, as a way to keep projects moving, protect margins and preserve relationships.
Making it work on your project
• Appoint the board at the start, within the time stated in the contract. A board appointed only when a dispute arrives loses the avoidance role.
• Budget for it. Members are paid a monthly fee and daily fees for site visits and hearings, usually shared by the parties.
• Keep it informed. Send progress reports and key correspondence so the board knows the project before a dispute arrives.
• Use the site visits. Raise issues early and openly.
• Watch the time limits. A missed Notice of Dissatisfaction can make a determination or decision final.
• Comply with decisions. Failing to comply creates a second dispute and weakens your position.
Common pitfalls
• The board is never appointed, or is replaced by an ad hoc board after the dispute starts.
• The parties treat the board as a mini-arbitration and flood it with submissions.
• The referral is not supported by a clear technical record of the delay or cost.
Time limits and procedures vary between FIDIC editions and are often amended by the Particular Conditions. Always check your own contract.
Setting up a DAAB or facing a dispute on site?
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Eng. Haitham Mokhtar
Chartered Engineer, accredited mediator and court-registered technical expert in the UAE, with 30+ years of experience.
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