USING DISPUTE REVIEW BOARDS FOR RESOLVING CONSTRUCTION DISPUTES IN SINGAPORE

Abstract

The construction industry is one that is prone to disputes; given that various parties, deadlines, coordination, financing concerns, profit motives and poor communication may be involved in any project. The purpose of this dissertation is to study the conflict management mechanisms that are presently in use in Singapore and to suggest for the incorporation of Dispute Review Boards (DRB) into the standard forms of contracts used in the construction industry. The concerns are hypothesized as follows: DRB is an equitable and efficient way of resolving disputes in the first instance and that DRB should be incorporated into the local standard forms of contract. The main objectives of this dissertation are to analyze the concept and use of DRB as stipulated in the New Supplement of the Red Book of FIDIC, to study the possible limitations of using DRB in Singapore due to the Security of Payment Act, to justify the need for DRB in the local construction industry and to devise a proposed conceptual implementation of DRB in the standard forms for the local construction industry.

Interviews were conducted with various professionals in Singapore’s construction industry and an extensive review of related works was done to bridge the gap in knowledge with regards to the concept of DRBs and their present use in ADR in Singapore.

From the findings of this dissertation, DRB is a useful concept that could be modified for the local industry. The three-tier pilot DRB scheme suggested by the author calls for integration of the various ADR methods available. By having DRB as the first line of defense, a dispute can be controlled at its source and parties can avoid adversarial attitudes from being formed.