Dispute Avoidance and Resolution Boards
Understanding How DARBs Differ from Traditional Dispute Resolution
DARB vs. traditional ADR
A DARB is not simply another name for arbitration or mediation. It is a separate process designed to help prevent disputes from escalating, while preserving the option to use mediation, arbitration, or other dispute resolution methods if needed.
The key differences include:
DARB
- Established at the start of a project
- Focused on preventing disputes
- Board becomes familiar with the project over time
- Regular site visits or project meetings
- Supports project continuity and collaboration
Traditional ADR
- Begins after a dispute arises
- Focused on resolving disputes
- Neutral appointed after conflict develops
- Structured around a single dispute
- Often used after positions have hardened
Resolve Issues Early and Keep Projects Moving
Why use a DARB?
Prevent Costly Disputes: Address issues early before they escalate into larger conflicts.
Preserve Working Relationships: Support collaboration and productive communication throughout the project.
Bring Construction Expertise: Board members bring experience across construction law, engineering, architecture, project management, and contracting.
Maintain Neutrality: Independent experts provide impartial recommendations grounded in the project’s facts and context.
Reduce Disruption and Cost: Proactive issue resolution can help avoid the expense and delay of formal proceedings.
How a DARB Works Across the Project Lifecycle
The process
1. Establish the Board
The contract establishes the Board under the AAA-ICDR DARB Rules. This gives the parties a structured process from the start of the project, before disputes arise. It also helps define how the Board will be selected, administered, and used throughout the project lifecycle.
2. Define Participation
Owners and general contractors typically participate, and other project stakeholders may be involved depending on the contract and project needs. Defining participation early helps clarify who will engage with the Board, attend meetings, and provide information when issues arise.
3. Stay Engaged
The Board holds regular site visits or virtual meetings to remain familiar with the project. This ongoing involvement helps Board members understand the work, the parties, and potential pressure points before they develop into larger disputes. It also supports open communication as the project progresses.
4. Raise Concerns Early
Parties bring issues to the Board as they arise. Raising concerns in real time allows the parties to address problems before positions harden or delays grow. This is one of the key benefits of a DARB: it is designed to help prevent disputes from escalating.
5. Review the Issue
The Board hears both sides in an informal setting. Each party has an opportunity to explain its position, share relevant information, and respond to the other side’s concerns. Because the Board is already familiar with the project, it can focus quickly on the issue and practical ways to move forward.
6. Receive a Recommendation
The Board issues a binding or nonbinding recommendation, depending on the parties’ agreement. The recommendation gives the parties a neutral view from experienced construction professionals and can help them resolve the issue without turning immediately to mediation, arbitration, or litigation. If the issue is not fully resolved, parties may still use other dispute resolution methods.
Independent Administration that Supports a Fair, Consistent Process
Why AAA administration matters
Assist the parties in selecting qualified Board Members
Coordinate meetings and notices
Distribute minutes and recommendations
Manage documents
Manage board member fees and expenses
Experienced Neutrals with Deep Construction Knowledge
Panel
Sam Barakat
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Adrian Bastianelli
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Deborah Bovarnick Mastin
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Ernest Brown
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Kurt Dettman, Esq.
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James Guyer
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Jeffery Jessamine
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Richard Reed
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Frequently Asked Questions
FAQs
What is the difference between a DARB and arbitration?
A DARB is established at the beginning of a project, with neutral Board members appointed early so they can stay familiar with the project throughout its lifecycle. The process is designed to help parties identify, avoid, and address issues as they arise. Arbitration is typically used after a dispute has already arisen, with an arbitrator appointed to resolve that specific dispute through a more formal process.
When is a DARB established?
A DARB is established through the project contract at the outset of the engagement.
How does the Board stay informed?
The Board meets regularly with the parties and becomes familiar with the project through site visits or virtual meetings.
Can the Board issue binding decisions?
The DARB may issue binding or nonbinding recommendations, depending on the parties’ agreement and the structure of the process.
What if the issue is not resolved through the DARB?
If a DARB recommendation does not fully resolve the matter, the parties may still pursue mediation, arbitration, or another dispute resolution process, depending on their contract and the applicable rules. File for Arbitration or Mediation
Why use AAA-ICDR to administer the process?
The AAA-ICDR provides rules, procedures, administrative support, panelist selection assistance, meeting coordination, documentation support, and fee administration.