Level: Advanced
TCM Section(s)
10.1. Project Performance Assessment
Venue: 2024 AACE International Conference & Expo
Abstract: At the 2023 AACE Conference and Expo, the authors presented a comparison between the AIA (AIA232-2019 edition) and FIDIC (2017 Red Book edition) contracts in respect of the dispute resolution procedures prior to the commencement of arbitration. During the preparation of the paper, several concerns in the AIA’s dispute resolution procedures were shared with the attendees. Due to the fact that these observations are a topic of their own right, it was decided then to prepare a separate paper that is a sequel to the 2023 paper that focuses on the observed flaws in the AIA contract pertaining to the dispute resolution process, with the aim of stimulating constructive debate on the topic and, ultimately, encouraging enhancement of the forms. Among the observed concerns is the uncertainty regarding the impartiality of the initial decision-maker (IDM), a critical flaw in the procedure leading to mediation, the impractical time limit for commencement of all claims / causes of action and the leeway given to the IDM to not provide a decision. The paper concludes with recommendations to help alleviate the shortcomings discussed. Throughout the paper, comparisons will continue to be made between the AIA and FIDIC contracts to shed light on some further key distinctions.
TCM Section(s)
10.1. Project Performance Assessment
Venue: 2024 AACE International Conference & Expo
Abstract: At the 2023 AACE Conference and Expo, the authors presented a comparison between the AIA (AIA232-2019 edition) and FIDIC (2017 Red Book edition) contracts in respect of the dispute resolution procedures prior to the commencement of arbitration. During the preparation of the paper, several concerns in the AIA’s dispute resolution procedures were shared with the attendees. Due to the fact that these observations are a topic of their own right, it was decided then to prepare a separate paper that is a sequel to the 2023 paper that focuses on the observed flaws in the AIA contract pertaining to the dispute resolution process, with the aim of stimulating constructive debate on the topic and, ultimately, encouraging enhancement of the forms. Among the observed concerns is the uncertainty regarding the impartiality of the initial decision-maker (IDM), a critical flaw in the procedure leading to mediation, the impractical time limit for commencement of all claims / causes of action and the leeway given to the IDM to not provide a decision. The paper concludes with recommendations to help alleviate the shortcomings discussed. Throughout the paper, comparisons will continue to be made between the AIA and FIDIC contracts to shed light on some further key distinctions.