DRB BENEFITS
Effective
and efficient dispute resolution. The DRB process is more successful than any other
method of alternative dispute resolution because:
- DRB members continually
monitor the project during construction and understand what has led to a
dispute.
- Board members get to know and
understand the individuals managing the project.
- DRB informal advisory
recommendations help keep disputes from escalating.
- DRB recommendations, even
though not binding, encourage settlement by helping the parties see the
strengths and weaknesses of their respective positions.
- In the few cases where a
dispute progresses to adjudication, DRB recommendations carry
considerable weight because they were made by independent, experienced
professionals with knowledge of the events as they occurred.
Positive
relations.
- A DRB fosters open
communication, professionalism, and the trust and cooperation needed for
the parties to resolve problems amicably and promptly.
- The DRB encourages the
parties to settle disputes in a prompt, businesslike manner so that an
ever-growing backlog of unresolved claims is avoided that might
otherwise lead to hostility and adjudication.
Claim
Avoidance.
- The existence of a
readily-available panel of experienced neutrals tends to promote
agreement on problems that would otherwise be referred to adjudication
after a long and acrimonious period of posturing.
- Experience has shown that 60%
of DRB projects have no disputes that warrant DRB intervention and only
2% have disputes that require adjudication.
Cost
savings.
- Prompt resolution reduces
legal expenses and consultant fees and lost productive time of the
owner’s and contractor’s management staffs.
- Bidders know earlier
resolution means earlier payment for modifications accepted by the
owner. Reduced litigation contingencies yield lower bids. Also, a DRB
recommendation speeds claim approval by public owners who need a
well-reasoned analysis to present to their governing body for approval.
- Experience on over $10
billion worth of transportation construction projects shows DRBs reduced
cost growth by 2.7% and time growth by 15.1%.
- A DRB encourages on-going dispute
resolution and does not leave disputes unresolved until the end of the
project. This permits the owner and contractor to avoid the high expense
and unpredictability of post-project adjudication.
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