Dispute adjudication is an alternative dispute resolution method for the out-of-court settlement of disputes which is predominantly in use for complex international construction projects. (More information on the dispute adjudication process)
FIDIC, the International Federation of Consulting Engineers, introduced dispute adjudication as a dispute resolution process in its standard contractual terms since mid-1990s. Since 1999, dispute adjudication has been part of all standard sample contracts.
Approx. 50,000 FIDIC contracts become awarded every year. They are recommended by both the multilateral development banks and by the World Bank Group. Dispute Adjudication Boards shall be appointed in all construction projects that are based on FIDIC contracts. Such boards are frequently appointed shortly after the contract has been concluded and before any dispute has even arisen in order to avoid disputes. Hence, in many cases the tender documents require bidders to make suggestions regarding the appointment of the members of the board.
Disputes arising in the context of large-scale projects may lead to prolonged disputes and to substantial losses. Dispute adjudication has been introduced to avoid prolonged disputes and such losses: The procedure is based on the contractual parties’ mutual agreement to entrust private persons with the settlement of any disputes that may arise. The aim is prompt, cost-effective and conclusive resolution of disputes.
VBI has undertaken the task of training German-speaking dispute adjudicators in accordance with FIDIC standards. A strict assessment, which was developed in line with FIDIC requirements, has been established and shall be passed by those who wish to be listed on the VBI adjudicator´s list.
Furthermore, VBI is performing the list keeping for German-speaking dispute adjudicators and acts as a nominating body for enquiries from parties wishing to engage a dispute adjudicator.
In line with FIDIC requirements German-speaking adjudicators must demonstrate sufficient knowledge of the English contract language during the assessment.