AN OWNER'S GUIDE TO AVOIDING THE PITFALLS OF DISPUTES REVIEW BOARDS ON TRANSPORTATION RELATED PROJECTS

In the past 20 years, billions of dollars of public money has been committed to and spent on the construction of major transportation projects. As with any large transportation project, substantial disputes frequently arise during the construction phase. These disputes can be quite complex and technical in nature with enormous amounts of money in controversy. Resolution can be costly and take years of litigation. A unique form of alternative dispute resolution (ADR), known as disputes review boards (DRBs), has recently gained acceptance on major transportation projects over traditional litigation efforts. Industry publications report that DRBs demonstrate remarkable success in helping owners and contractors avoid costly litigation. However, owners and contractors need to be cognizant of lessons learned from the industry's now substantial experience with DRBs. This article identifies a number of potential pitfalls associated with DRBs and other issues that should be considered when drafting DRB related contract documents. These issues are discussed in the context of the attributes that distinguish DRBs from other forms of ADR and mediation.