Dispute Boards > Cost of DBs

Some people believe that dispute boards are costly, but this is not the case.


Low Cost

According to statistics provided by the Dispute Resolution Board Foundation, the cost of employing standing dispute boards is between 0.05% of the construction cost on dispute free projects and 0.25% for more difficult projects. Furthermore, these costs are shared equally between the parties. Typical costs for dealing with disputes are around 0.02% of the value of the dispute. Additionally, if the contractor has the comfort that his claims will be dealt with fairly and reasonably and that any disputes will be decided in an impartial and timely manner, it is reasonable to assume that he would consider such a situation would remove a certain amount of risk that would otherwise be included for within his price. From this, it is also reasonable to assume that projects with dispute board provisions would result in potentially lower bids.


Fees Subject to Negotiation

The fees of the dispute boards are subject to negotiation between the parties and each individual member. It is also usual for the members to be reimbursed for travel and other expenses incurred whilst carrying out their duties.


Dispute Boards Save Money

Savings by the use of dispute boards are as follows:

  • No arbitration fees
  • No lawyer fees
  • No court fees
  • No employee time preparing for arbitration
  • Reduced cost of delays by resolving disputes early
  • Increased goodwill between the parties