Dispute Review Boards: Expected Application on Egyptian Large-Scale Construction Projects

Abstract

The construction industry is heavily affected by the troubles arising out of construction disputes, especially when it comes to large-scale projects, as a direct result of the inherent complexity of such projects. This paper seeks the most suitable dispute-resolution mechanism for large-scale construction projects in Egypt, which is a developing country in the Middle East with an emerging reformed economical policy, a population in excess of 70 million people, and an increasing need for infrastructure and industrial development. This dispute-resolution mechanism was attained through a multistep methodology that (1) started with the study of the Arbitration process in relation to an Egyptian construction project with an initial contract price of 85 million; (2) continued with interviews of five senior experts in the field of construction disputes in Egypt about their views pertaining to the most efficient dispute-resolution methodology for Egyptian megaprojects; (3) developed a tailored questionnaire to assess the perceptions of 35 professionals toward the issue of construction disputes and dispute resolution mechanisms, including DRB; (5) concluded by carrying out a what-if scenario for the arbitration case of the large-scale construction project using DRB instead of arbitration. On basis of the analysis of the methodology, the authors concluded that despite the wide range of current dispute-resolution methodologies, the employment of DRBs in accordance with a set of 13 regulatory guidelines should mitigate the negative effects of disputes in Egyptian large-scale construction projects. Accordingly, this paper is both timely and valuable for all owners, contractors, and professionals who are acquainted with Egyptian megaprojects.

Department(s)

Civil, Architectural and Environmental Engineering

Keywords and Phrases

Contracts; Egypt; Industrial management; Population statistics; Project management; Sustainable development, Arbitration process; Contract price; Dispute resolution; Economical policy, Construction industry

International Standard Serial Number (ISSN)

1052-3928; 1943-5541

Document Type

Article - Journal

Document Version

Citation

File Type

text

Language(s)

English

Rights

© 2007 American Society of Civil Engineers (ASCE), All rights reserved.

Publication Date

01 Oct 2007

Link to Full Text

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