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.