Dispute Review Board

Definition:

Dispute Review Board (DRB) is a forum for dispute resolution, typically comprising 1 to 3 independent and impartial persons selected by the contracting parties. Much like a project neutral, they are appointed before any disputes arise – typically at the time of the contract. For a project where a DRB is present, typically, an owner and the general contractor will agree on who will serve on the DRB. Sometimes, both sides will nominate a member and then the pair will appoint a third member. It has “real-time” value beginning with the contracting stage, all the way through completion – the members of the DRB are involved and understand the ins and outs of the projects well as the relationships of all parties. They typically perform periodic walk-throughs to check on the job progress and conditions. Because the third party is impartial and informed about the project, it is easier to come to a quick and fair result on disputes. The idea behind a standing DRB is that it may be called upon early to help resolve those dispute which cannot be resolved by the parties; a DRB may also be asked to publish decisions or recommendations on how the matters in issue should be settled going forward. DRB decisions can be binding, or merely advisory, with the opportunity for the matter to be referred to arbitration or to the courts if the Board's decision is not accepted by the parties. While DRB decisions are normally non-binding recommendations, the parties can empower the Board to make binding decisions up to a certain dollar amount.