The Cairo Regional Centre for International Commercial Arbitration is pleased to announce that it has launched its new Dispute Board Rules (“CRCICA DB Rules”). The issuance of these Rules comes as a response to a growing demand from the construction and business communities for a prompt, cost-effective and impartial dispute prevention and resolution mechanism before proceeding to arbitration as a last resort. CRCICA has already been chosen by parties to infrastructure contracts as an appointing authority of dispute board members.
Unlike other one-time methods of dispute resolution mechanism, which commence after the rising of a dispute, a Dispute Board is generally appointed at the beginning of a long-term project. It helps the parties avoid or overcome any disagreements or disputes that arise during the implementation of the contract and assist them in resolving their differences at an early stage, which contributes in reducing costs, especially litigation and arbitration fees, and time.
The Rules came to force on 1st August 2021, and apply to contracts including a CRCICA Dispute Board Clause concluded after this date. CRCICA DB Rules may apply to contracts concluded before that date, if the parties expressly agree to it. Model Clauses are included in Annex (A) of the CRCICA DB Rules.
The drafting of the Rules started in 2019 by a CRCICA internal committee, then the task was undertaken by a larger committee “CRCICA DB Committee” formed by the members of the internal committee and an important number of international renowned experts in the field of construction, dispute resolution and DB. The drafting process relied on existing DB rules, the wide experience of the CRCICA DB Committee members, consultation of some major international companies and public entities, the latest developments in the construction and dispute resolution fields and the needs of the construction and business community on the local and international levels.
The CRCICA DB Rules cover such matters as the appointment of the DB member(s), their qualifications and obligations, the commencement and completion of the DB’s activities and the compensation of the DB member(s) in accordance with the prevailing international practices. To accommodate small projects and meet the needs of many users, CRCICA DB Rules provide for the possibility for a DB member, upon the parties’ express request, to be paid on lump-sum basis, if the DB’s mission is limited to issuing a conclusion related to a dispute that has already arisen between the Parties.
CRCICA DB Rules main feature is the optional administrative services that the Centre provides, which may be requested from the Centre by either Party or the DB Members. Such optional administrative services include facilitating communication between the parties and the DB members, providing necessary practical arrangements for meetings and hearings and other services as set out in the CRCICA DB Rules.
Launch events and discussions of the CRCICA DB Rules are expected to take place starting from October 2021.