Dispute Board Clause
Include one of these texts in your contract. In public works, the board is established by mandate of the Regulations; in private construction contracts, it is the clause that makes it enforceable.
6.1 Works contracts governed by Law 32069
“Any discrepancies, disagreements and disputes of a contractual or technical nature arising between the parties during the performance of the contract shall be submitted to a Dispute Board administered by ANDEARB — Arbitration Center in accordance with its Dispute Board Rules and the applicable public procurement legislation. The Board shall be composed of [one (1) adjudicator / three (3) adjudicators] and shall be constituted before the performance period begins, through the execution of the tripartite agreement. Its decisions are binding and must be complied with immediately upon notification.”
6.2 Private construction or supply contracts
“The parties hereby establish a Dispute Board, administered by ANDEARB — Arbitration Center in accordance with its Dispute Board Rules in force at the time of its constitution, composed of [one (1) adjudicator / three (3) adjudicators], which shall be installed within [thirty (30)] days following the execution of this contract and shall act throughout its performance. The Board shall assist the parties in preventing disagreements, issue advisory opinions at the joint request of the parties, and resolve by binding decisions the disputes submitted to it. Decisions must be complied with immediately upon notification.”
6.3 Multi-tier clause: from the Board to arbitration
“A party that disagrees with a decision of the Board may submit the dispute to arbitration within the limitation period, by way of arbitration at law administered by ANDEARB — Arbitration Center in accordance with its Arbitration Rules. A notice of disagreement and the commencement of arbitration shall not suspend compliance with the decision.”
Common mistakes
- Agreeing to a board without specifying who will administer it, leaving its constitution in the hands of the more diligent party.
- Drafting the board’s decision as a “recommendation”, which strips it of the binding nature conferred by the Regulations.
- Making compliance with the decision conditional on arbitration not being commenced: the decision must be complied with even if a party reserves that right.
- Copying another center's clause without changing the name of the administering institution.
- All model clausesSingle document · PDFDownload