Dispute Board
The Dispute Board (JPRD under Peruvian law) accompanies the performance of the contract from the outset. It is composed of one or three adjudicators who visit the site, follow the progress of the works and decide disagreements as soon as they arise, through binding decisions that must be complied with immediately.
Unlike arbitration, which comes in once a dispute has already halted the works or driven up their cost, the board is in place before any dispute exists. Its value lies in timing: it decides while the contract is being performed, without bringing it to a halt.
The Dispute Board hears any discrepancy, disagreement or dispute of a contractual or technical nature arising between the parties during performance, from commencement until handover or final payment, and may hear the final account settlement of the works if so provided in the procurement strategy. It may order provisional and conservatory measures.
The board’s three functions
| Function | What it involves |
|---|---|
| Dispute prevention | Assists the parties in reaching understandings and recommends that they directly resolve circumstances that could give rise to a dispute. |
| Advisory opinion | At the request of one party, with the written consent of the other, answers contractual or technical queries within fifteen business days. |
| Binding decision | Resolves the dispute submitted to it. |
How does a Dispute Board work at ANDEARB?
The Dispute Board accompanies the entire performance of the contract. These are the general stages of its operation; time limits and formalities are set by the Dispute Board Rules.
Request and tripartite agreement
The parties ask the Center to establish the Dispute Board. The contracting entity, the contractor and the adjudicators sign the tripartite agreement, which incorporates the Dispute Board Rules.
Constitution of the Dispute Board
One or three adjudicators are appointed and declare their independence and impartiality. The Dispute Board is established before the construction period begins.
Site visits, meetings and advisory opinions
The Dispute Board visits the site and meets regularly with the parties to follow progress and prevent disagreements. At the request of one party, with the consent of the other, it issues advisory opinions.
Binding decisions
If a dispute arises, either party may refer it to the Dispute Board, which resolves it by a binding decision to be complied with immediately upon notification.
Subsequent arbitration
A party dissatisfied with the decision may refer the dispute to arbitration within the statutory time bar. In the meantime, the decision must be complied with.