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Engineering projects, whether they are civil, mechanical, or electrical, are complex undertakings involving multiple stakeholders, with significant financial investments. They projects must often be completed within tight deadlines and with the involvement of many parties. It is perhaps not surprising that disputes are almost always inevitable.

To address conflicts between the parties, adjudication has emerged as a preferred method of resolving disputes in a swift and cost-effective manner.

Why does adjudication matter?

Adjudication is a form of dispute resolution primarily used in the construction and engineering sectors. It offers the parties a means to manage disagreements. Depending on the contract terms, it is a statutory or contractual process where an independent adjudicator makes a binding decision on a dispute, typically within 28 days of referral.

Ideally, Adjudicators should have the technical or legal backgrounds relevant to the dispute. Unlike arbitration or litigation, adjudication is designed to be a fast review process and less formal, allowing projects to continue while disputes are being resolved.

Disputes can stem from issues such as delays, underpayments or non-payments, defects or quality concerns, as well as conflicts on the scope and the contract interpretation. The latter tends to be costly, both in terms of time and the delays to the project.

Adjudication plays a vital role in ensuring that the momentum on engineering projects is maintained. This is useful for addressing disputes efficiently. However, the challenges inherent in engineering – technical complexity, stakeholder dynamics, and contractual ambiguity – all require proactive risk management and clear communication. If the parties understand the adjudication process and are prepared for potential disputes, then the project teams are better able to navigate the legal landscape and ensure the project’s successful delivery.

While the adjudicator’s (DAB /DAAB) decisions are enforceable, it is worth noting that the parties may still resist compliance, and this in turn could lead to further legal action.

What are some challenges faced by Adjudicators on DABs under FIDIC contracts?

Dispute Adjudication Boards (DABs) are the cornerstone of dispute resolution in international construction contracts, especially in the case of those governed by the FIDIC suite of contracts. Designed to provide timely and cost-effective decisions during the course of a project, DABs aim to prevent disputes from escalating into arbitration or litigation. However, adjudicators on DABs may face a range of challenges which could complicate their role and impact the effectiveness of the process.

1. Complexity: FIDIC contracts are comprehensive, but their complexity can pose interpretative challenges. Adjudicators must navigate intricate clauses, such as those related to variations, extensions of time, and claims procedures. Misinterpretation or inconsistent application of these clauses can lead to disputes over the adjudicator’s jurisdiction or the validity of their decisions.
2. Jurisdictional and procedural interpretations: One of the most common challenges is determining whether the DAB has jurisdiction over a particular dispute. Parties may argue that the issue falls outside the scope of the DAB’s authority, especially if procedural steps (like notice requirements) were not properly followed. This can delay proceedings and undermine the adjudicator’s ability to deliver timely decisions. In addition, adjudicators often deal with parties from different legal systems and cultural backgrounds. This can affect how contract terms are interpreted and how parties engage with the adjudication process. Adjudicators must be sensitive to these differences while ensuring consistent application of the contract.
3. Time constraints: FIDIC contracts typically require adjudicators to issue decisions within a short timeframe (often 84 days). While this promotes efficiency, it can also pressure adjudicators to make decisions without sufficient time for detailed analysis, especially in complex disputes involving technical, financial, and legal dimensions.
4. Neutrality: Adjudicators are expected to be impartial, but they are often appointed by the parties or selected from a list agreed upon by them. This can lead to perceptions of bias, particularly if one party feels the adjudicator favours the other. Maintaining neutrality while managing party expectations is a delicate balancing act.
5. Enforcement: Although FIDIC contracts stipulate that DAB decisions are binding unless and until revised by arbitration, enforcement can be problematic. Parties may refuse to comply with decisions, especially if they intend to challenge them later. This undermines the authority of the DAB and can lead to further disputes.

Given requests from the industry in the past, FIDIC has sought to provide and strengthen capacity building. Parties need qualified experts to help them navigate disputes, but they also need to know where to find such experts and to be confident that they can meet the requirements of the parties to the contracts, i.e., as regards navigating their disputes.

FIDIC offers a certification for qualified experts who have experience in dispute avoidance and dispute resolution, as well as a thorough understanding of how to FIDIC contract terms apply across the various types of projects and contractual agreements.

This qualification is therefore ideal for experts who have the technical and legal knowledge of how construction and engineering projects are run and understand how best to help parties navigate conflicts when disputes arise.

Becoming a FIDIC Certified Adjudicator would provide professionals who have mediation or adjudication expertise with the opportunity to validate their skillsets and obtain the FIDIC seal of excellence. This qualification would also allow those certified to be listed on the distinguished FIDIC President’s list of Approved Dispute Adjudicators.

Registration for this international certification is currently open. This will be the last session of 2025.

More information on the programme aand application requirements can be found here: https://fcl.fidic.org/our-programmes/adjudicators