For decades, the construction industry has focused on resolving disputes after they arise. Contracts have become increasingly sophisticated, claims management practices more robust, and mediation and arbitration more widely utilized. Projects are also facing increased risks with changes in supply and demand of materials and labor. Yet despite advancements, construction disputes continue to consume significant time, money, and resources on projects around the world.
The challenge is not that the industry lacks effective dispute resolution tools. Rather, too many project participants still view disputes as events to be dealt with after they occur instead of risks to be actively managed and prevented.
As project complexity and delivery pressures increase, owners, contractors, designers, and project stakeholders are looking for ways to address issues before they evolve into formal claims. This shift in mindset has fueled growing interest in Dispute Avoidance and Resolution Boards (DARBs) — a proactive project management and risk mitigation tool that is gaining traction across the construction industry.
At the American Arbitration Association® (AAA®), DARBs provide a structured framework for helping project participants resolve issues early, preserve relationships, and maintain project momentum before disputes escalate into costly and time-consuming proceedings.
The Cost of Waiting
Construction disputes rarely emerge overnight.
Most significant claims begin as relatively small project issues: an interpretation disagreement, a design concern, a scheduling conflict, a change order dispute, or differing views regarding responsibility for unforeseen conditions. Left unresolved, these issues can compound over weeks or months, creating delays, increasing costs, and hardening positions between project participants.
By the time a formal claim is filed, the dispute has often expanded beyond the original issue. Parties have invested substantial resources in documenting their positions, retaining experts, and preparing for litigation, arbitration, or mediation. Relationships may have deteriorated, communication may have broken down, and opportunities for practical business solutions may have been lost.
This reality creates a simple but important question: Why wait until a dispute becomes a claim before engaging neutral expertise?
DARBs answer that question by providing a mechanism for early intervention and continuous project engagement.
What Makes a DARB Different?
Unlike traditional dispute resolution processes that are activated after a dispute arises, a DARB is established at the beginning of a project.
The Board typically consists of one or three highly experienced neutral professionals with expertise relevant to the project. These individuals may include engineers, construction executives, architects, project managers, attorneys, or other industry specialists with extensive construction experience. Once appointed, the Board remains actively involved throughout the life of the project.
Board members become familiar with the contract documents, project objectives, schedules, key stakeholders, and project-specific risks. Through periodic meetings, project updates, and site visits, they develop a working understanding of the project as it progresses and challenges emerge.
This continuous engagement is one of the DARB's greatest strengths.
When issues arise, Board members already possess the context necessary to evaluate concerns quickly and effectively. Rather than spending months becoming familiar with a project after a dispute has escalated, the Board can provide informed guidance based on their firsthand knowledge and ongoing involvement.
Unlike traditional dispute resolution, where a neutral is often introduced only after a claim has been filed, a DARB is uniquely positioned to provide real-time issue resolution. Questions and disagreements can be addressed while the work is ongoing, helping parties maintain project momentum, reduce costly delays, and avoid the escalation of issues into formal disputes.
The AAA DARB process also offers advantages beyond the Board itself. Through its experienced case management professionals, established administrative procedures, and carefully curated roster of highly qualified DARB neutrals, the AAA provides an independent framework for the appointment and administration of Boards. This allows project participants to focus on resolving issues rather than managing procedural aspects, while reinforcing confidence in the Board's neutrality and effectiveness.
Dispute Avoidance: The Often-Overlooked Advantage
For many projects, the value of a DARB is measured not by the disputes it resolves, but by the disputes that never materialize.
The presence of an independent Board fosters communication and accountability among project participants. Knowing that issues can be raised and discussed with experienced neutrals often motivates parties to address concerns earlier and engage in more productive problem-solving.
Regular Board meetings also create opportunities to identify trends and emerging risks before they become significant problems. Schedule pressures, coordination challenges, procurement concerns, and contract interpretation issues can often be recognized and addressed while solutions remain relatively straightforward.
Because the Board is already familiar with the project, parties are not forced to "start from scratch" each time an issue arises. The Board can facilitate discussions, provide informal guidance when appropriate, or issue recommendations quickly, allowing project teams to continue making progress instead of waiting months for a formal dispute resolution process to begin.
The result is not simply fewer disputes — it is often better project performance.
Supporting Project Delivery in an Increasingly Complex Environment
Today's construction projects operate within a risk environment that would have been difficult to imagine even a decade ago.
Owners and contractors are navigating labor shortages, material price volatility, supply chain disruptions, evolving regulatory requirements, technological integration challenges, sustainability objectives, and increasing stakeholder scrutiny. At the same time, projects continue to grow in scale and technical sophistication. Major infrastructure initiatives, energy projects, healthcare facilities, manufacturing plants, data centers, and transportation systems frequently involve multiple contractors, consultants, suppliers, and public or private stakeholders. In such environments, even minor disagreements can have significant consequences.
DARBs provide project teams with access to experienced neutrals who understand both the technical and commercial realities of construction. Their ongoing involvement helps project participants maintain focus on successful project delivery rather than becoming consumed by conflict.
Preserving Relationships While Managing Risk
Unlike more adversarial dispute resolution processes, DARBs encourage collaboration and constructive problem-solving while helping parties preserve productive working relationships.
Construction remains a relationship-driven industry. Owners, contractors, designers, and consultants often work together across multiple projects over many years. However, formal disputes can strain those relationships and create lasting challenges that extend beyond a single project.
DARBs create a collaborative forum where parties can address disagreements constructively. This does not mean difficult issues are avoided. Rather, they are addressed in a structured, informed, and constructive manner before positions become entrenched.
The ability to resolve issues while preserving working relationships can create value that extends far beyond the immediate dispute.
A Growing Opportunity for the Industry
The use of dispute boards has long been recognized internationally on major infrastructure and construction projects. Increasingly, project participants across North America are recognizing the value these boards can bring to projects of varying sizes and complexity.
As organizations continue to seek strategies to control costs, improve project outcomes, and reduce claims exposure, DARBs represent an important evolution in project risk management.
For organizations seeking both experienced neutrals and a trusted administrative partner, the AAA DARB process provides a comprehensive solution. By combining proactive dispute avoidance with impartial administration and experienced case management, project teams gain a process designed to keep projects moving — not simply resolve disputes after they occur.
The conversation is no longer limited to how disputes should be resolved. Leading organizations are asking a more important question: How can disputes be prevented from occurring in the first place?
DARBs help answer that question.
Looking Ahead
The future of construction dispute management will likely involve a greater emphasis on prevention, collaboration, and early intervention. While arbitration, mediation, and litigation will always play important roles in resolving unavoidable disputes, project stakeholders increasingly recognize that the greatest value often comes from preventing conflicts from escalating in the first place.
DARBs offer a practical and proven framework for accomplishing that goal. By bringing experienced neutrals into projects early, fostering communication among stakeholders, and creating opportunities for timely issue resolution, DARBs help transform dispute management from a reactive process into a proactive project success strategy.
In an industry where time, relationships, and resources are among the most valuable assets, that proactive approach may be one of the smartest investments a project team can make.