Why a Dispute Board at CRCICA
Flexibility & Assistance
The Dispute Board Rules (Rules) of CRCICA provide a complete, but flexible frame for the functioning of a Dispute Board (DB). The model Dispute Board Member Agreement (DBMA) provides the necessary provisions to conclude a valid, flexible and adequate agreement, subject to any modifications of the parties as authorised by the Rules, whilst the two model clauses provided for the parties’ adoption suffice to make the Rules applicable to the type of DB agreed at the contract.
Parties have several options in that regard:
- They may rely exclusively on the Rules;
- They may rely on the Rules, and in addition, make their DB an administered DB by CRCICA, by opting for administrative services that the Centre provides (as per Article 18 of the Rules); or
- They may rely essentially on the Rules, but also amend and create their own ideal DB mechanism, by adopting further provisions at the DBMA or contract, as is possible under the Rules. This may be preferred by experienced parties, whose contract and project entails significant particularities, or simply in order for the DB and its associated dispute avoidance and resolution mechanism to attune to the parties’ expectations and interests.
The adoption of CRCICA DB Rules is for free. So, when the parties adopt a DB under the Rules, they do not need to pay any fees to the Centre. Even in case of emergence of a dispute, when the DB provides informal assistance or issues a conclusion following a formal dispute resolution process, there are also no fees to pay to CRCICA.
On the other hand, if the parties so wish or desire, they can rely on the Centre for deliberate decisions and assistance, as may be needed, in relation to the appointment and removal of DB members, determination of their compensation, selection of the adequate candidate, etc. In relation to those specific requests, regulated under the Rules, the Centre usually requires a fixed fee of USD 500 per operation, and only upon the parties’ request.
Finally, in the case of an administered DB (a DB for which additional optional services have been opted for as provided under Article 18 of the Rules), the Centre will determine the fees in accordance with the services specifically provided (for instance facilitating correspondence). Parties who would wish the Centre to oversee the whole operation of the DB, or rather, assist and administer it, can also opt for a full assistance by the Centre to ensure the smooth and recorded operation of their DB at the contract.
A DB under the Rules of CRCICA will only entail administrative costs when expressly required by the parties. Otherwise, the DB provision at the contract needs no intervention by the Centre to function.
Comprehensive & Fits Multiple Industries
To date, only few arbitral institutions worldwide offer a comprehensive DB mechanism. Meanwhile, the Rules have profited from the construction industry’s experience in managing, and using this dispute resolution and avoidance mechanism for over the course of nearly 50 years.
The Rules are perfect for construction projects contracts but also may be adapted and applied to any medium to long-term contract and project of any industry that requires continuous follow-up of the contract, cannot suffer delays and is best led to term when safeguarding the relationship of the parties.
Projects such as the Canal sous la Manche in Europe, the Airport of Hong-Kong and Terminal 3 of Cairo’s International Airport have been brought successfully to completion without ever referring to arbitration, and with the contracts being continuously and consistently performed under a DB mechanism.
Formulated by Worldwide Experts in the Field
For the elaboration and drafting of the Rules, CRCICA formed and relied on an expert Committee composed of worldwide specialists, professionals and practitioners in the field (the Committee).
An initial draft of the Rules was first created based on the guidance of existing institutional rules, then submitted to the Committee, composed of experts from:
- China: Mr. Zhiyong Li
- Egypt: Prof. Dr. Mohamed Abdel Raouf, Eng. Muhammad El Haggan, Eng. Waleed El Nemr, Ms. Nermine El Shimy, Prof. Ahmed Fathy Waly and Eng. Engy Serag.
- Ireland: Prof. Nael G. Bunni
- Spain: Prof. Bernardo Cremades
- Sweden: Eng. Aisha Nadar
- U.A.E.: Mr. Ahmed Ibrahim
- U.K.: Dr. Cyril Chern and Mr. Jeremy Nicholson
- Zambia: Henry M. Musonda and Ms. Suzanne Rattray
- CRCICA: Dr. Mohamed Hafez, Ms. Heba A. Salem and Dr. Ismail Selim
Those draft Rules were subjected to a further two rounds of revisions, benefiting from the comprehensive input and invaluable guidelines of such Committee, and were eventually moderated by a smaller committee that integrated all input into the Rules, which finally came into force in August 2021.
The Rules created a comprehensive and innovative framework, providing for the most recent developments in the field of DB.