Time is as a fundamental element in contracting agreements, particularly given the complexity and technical nature of such contracts. Consequently, dispute resolution methods in this field must be both expeditious and highly specialized. Additionally, since unresolved disputes can lead to contract termination or compromise project quality, maintaining both parties' willingness to continue the contract is paramount. It is essential to adopt dispute resolution mechanisms that protect the interests of both parties, fostering win-win outcomes.
The International Federation of Consulting Engineers (FIDIC), drawing on its extensive experience, has incorporated the Dispute Adjudication Board (DAB) alongside preventive dispute resolution measures into its standard contract templates. The DAB, a hybrid mechanism combining elements of mediation and expert determination, offers a unique approach to dispute resolution. While this model is widely implemented in international contracts, its application in Iran remains limited. The Contractual Dispute Board of the Ministry of Petroleum represents the closest equivalent within the Iranian legal framework.
This article explores the structure and functioning of the FIDIC Dispute Adjudication Board, compares it with existing dispute resolution mechanisms in Iran, and examines its potential for broader application in the Iranian contracting sector.