DRB Cost

DRB COST

Owners and contractors who have used the DRB process generally agree that the value far exceeds the cost. DRB cost ranges from 0.05% of final construction contract cost for relatively dispute-free projects to 0.25% for difficult projects with frequent disputes.

Each DRB member's professional fee for meetings or hearings varies, and each member sets an hourly fee for document review and study time.

Periodic meetings and site visits normally require a day. Time spent reviewing progress reports and other documents and preparing for periodic visits is usually nominal. Chairman duties require more time.

The cost of a hearing depends on the time required for review of the parties’ pre-hearing submittals, the hearing itself, and the time required for the DRB to deliberate and prepare the written recommendation(s). For a simple case, the hearing could occur during a routine site visit followed immediately by the deliberations, with the recommendation issued shortly thereafter. Complex disputes might require several days of hearings and several weeks for DRB deliberations and report preparation.

Travel and subsistence expenses and other reimbursable costs vary depending on frequency of hearings and meetings and the members’ travel distances.

The contractor usually pays all the Board member fees and expenses monthly and is reimbursed the owner’s half via a cash allowance in the contract.