In FIDIC contracts, both DAB (Dispute Adjudication Board) and DAAB (Dispute Avoidance/Adjudication Board) are mechanisms used to resolve disputes during construction projects. While they may sound similar, they reflect an important evolution in how disputes are managed—moving from reactive resolution to proactive avoidance.
The DAB is used in older editions such as the FIDIC Red Book 1999. Its primary role is to resolve disputes after they arise. When a disagreement occurs between the Employer and Contractor, the dispute is referred to the DAB, which reviews submissions and issues a decision. This decision is binding on an interim basis and must be complied with unless it is later challenged through arbitration. In essence, the DAB acts as a fast-track dispute resolver, but it becomes involved only after a dispute has formally crystallized.
In contrast, the DAAB, introduced in the FIDIC 2017 edition, has a broader and more proactive role. As the name suggests, it focuses not only on adjudication but also on dispute avoidance. The DAAB is typically appointed at the beginning of the project and remains involved throughout the contract duration. In addition to issuing decisions on disputes, the DAAB can provide informal assistance, recommendations, and guidance to help the parties resolve issues before they escalate into formal disputes.
Another key difference lies in timing and involvement. The DAB is often appointed on an ad-hoc basis when a dispute arises (although it can also be standing), whereas the DAAB is generally a standing board that is continuously engaged with the project. This ongoing involvement allows the DAAB to better understand project conditions, monitor potential risks, and intervene early.
In terms of function, both DAB and DAAB issue binding decisions on an interim basis, which must be followed by the parties. However, the DAAB has the added ability to support amicable settlement through informal discussions, making it a more collaborative and preventive mechanism.
In conclusion, the key difference is that DAB focuses on resolving disputes, while DAAB aims to both avoid and resolve disputes. The shift from DAB to DAAB in FIDIC reflects a modern approach to contract management—prioritizing early intervention, communication, and dispute prevention rather than relying solely on formal adjudication after conflicts arise.
