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● Effective and efficient dispute resolution. The DRB process is more successful than any other method of alternative dispute resolution because: ○ DRB members continually monitor the project during construction and understand what has led to a dispute. ○ Board members get to know and understand the individuals managing the project. ○ DRB advisory opinions help keep disputes from escalating. ○ DRB recommendations, even though not binding, encourage settlement by helping the parties see the strengths and weaknesses of their respective positions. ○ In the few cases where a dispute progresses to adjudication, DRB recommendations carry considerable weight because they were made by independent, experienced professionals with knowledge of the events as they occurred. ● Positive relations. ○ A DRB fosters open communication, professionalism, and the trust and cooperation needed for the parties to resolve problems amicably and promptly. ○ The DRB encourages the parties to settle disputes in a prompt, businesslike manner so that an ever-growing backlog of unresolved claims is avoided that might otherwise lead to hostility and adjudication. ● Claim Avoidance. ○ The existence of a readily-available panel of experienced neutrals tends to promote agreement on problems that would otherwise be referred to adjudication after a long and acrimonious period of posturing. ○ Experience has shown that 60% of DRB projects have no disputes that warrant DRB intervention and only 2% have disputes that require adjudication. ● Cost savings. ○ Prompt resolution reduces legal expenses and consultant fees and lost productive time of the owner’s and contractor’s management staffs. ○ Bidders know earlier resolution means earlier payment for modifications accepted by the owner. Reduced litigation contingencies yield lower bids. Also, a DRB opinion speeds claim approval by public owners who need a well-reasoned analysis to present to their governing body for approval. ○ Experience on over $10 billion worth of transportation construction projects shows DRBs reduced cost growth by 2.7% and time growth by 15.1%. ○ A DRB encourages on-going dispute resolution, and does not leave disputes unresolved until the end of the project. This permits the owner to avoid the high expense and unpredictability of post-project adjudication.
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DRB Benefits |
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© 2007 JLMcDonald Conflict Resolution Services. All rights reserved. |
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Conflict Resolution Services |
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JLMcDonald |