The ICC DISPUTE BOARD RULES DRBF 6th Annual International Conference Programme Budapest 6-7 May 2006 Presentation by Katherine González Arrocha Senior Counsel, ICC DRS

2 ICC Dispute Resolution Services: ARBITRATION - To obtain a final and binding decision from an independent tribunal EXPERTISE - To obtain an opinion on a financial, legal, technical matter or to solve a dispute through expert determination. DOCDEX - To obtain an opinion in disputes concerning documentary credits. ADR - To solve disputes amicably. DISPUTE BOARDS - To assist the parties in resolving their differences or disputes throughout the duration of the contract.

3 The ICC Dispute Board Rules – Product of Task Force on DBs of ICC Commission on Arbitration – Entry into force: 1 September 2004 – Languages published: English, French and Spanish – Available: ICC Publication 829 (Free) – Web site:

4 Contribution of the ICC Result of discussions of professionals from different parts of the world: ICC provides procedural rules that incorporate current best practices internationally recognized. Disputes Boards are essentially found in the construction and engineering field. ICC DB rules have been conceived to be used in all contractual disputes arising in the course of mid- or long-term contracts. Therefore, they are applied not only on the long term engineering contracts but also on medium size projects as well as in other fields of business transactions. The ICC offers 3 Dispute Boards Tools and 3 different kinds of DBs.

5 ICC DISPUTE BOARD TOOLS The Rules: ICC offers a comprehensive and flexible set of rules designed to govern the proceedings. They can be adapted to the particular needs of the parties (time and place). The ICC model Dispute Board Member Agreement containing: –DB member’s undertaking –DB member’s remuneration –The duration of the agreement The standard ICC Dispute Board Clauses consisting of three alternatives, each providing for a different type of Dispute Board.

6 Differences between DRB, DBA and CDB approach DRB APPROACH -A consensual and amicable process ending with a non binding recommendation -The parties can accept or reject the recommendation DAB APPROACH -A less consensual approach ending with binding decision -The parties have to comply with the decision CDB APPROACH -It offers an intermediate approach. -The CDB normally issues recommendations with respect to any dispute referred to it but may issue a Decision.

7 Advantages of DRB, DAB and CDB approaches DISPUTE REVIEW BOARD - The DRB can devise solutions which avoid 'win-lose' situations. - Statistics indicate that DRB decisions are generally accepted by both parties. DISPUTE ADJUDICATION BOARD - Decisions are effectively enforceable as a term of the contract. - The panel can prevent future disputes between the parties. COMBINED DISPUTE BOARD - Combines the advantages of both systems according to different situations.

8 ICC DISPUTE BOARD CENTRE Providing administrative services to the parties: 1. Appointment of DB members; 2. Decisions upon challenges; 3. Revision of Decisions.

9 Salient characteristics of ICC Dispute Board Rules Flexibility -Do not impose a particular type of Dispute Boards. Offer 3 different tools to manage proceedings. Possibility to have recourse to ICC Centre for DB to resolve problems: possibility to request scrutiny of decisions.

10 Advantages of DBs The parties can choose the DB members having the characteristics and qualifications required by them (technical, legal, financial, accounting, engineering, etc...). Immediate action / Perfect knowledge of the contract: DB members can intervene at any moment of the execution of the contract, allowing to resolve problems as they arise and also helping to avoid the deterioration of the relationship between the parties. Reducing costs: By giving recommendations, DB permit the parties to reconsider their respective positions and to modify, if necessary, the contract between the parties, thus reducing costs.

Additional information: ICC Dispute Board Centre 38, cours Albert 1er Paris France Tel.: Fax number: Website: