A Critical Analysis of the Legal Framework Governing Dispute Boards in Construction Contracts: An In-Depth Analysis of Dispute Adjudication Boards and Dispute Review Boards in the Context of Thai Law and International Standards
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Abstract
This article aims to conduct an in-depth legal analysis of issues concerning dispute
boards in construction contracts, with particular focus on the Dispute Adjudication Board (DAB) and the Dispute Review Board (DRB) within the context of the Thai legal system. At present, Thailand lacks a specific statutory framework that clearly defines or regulates this form of dispute resolution mechanism. The study adopts a comparative legal approach, examining the international standard form of contract developed by the Fédération Internationale des Ingénieurs-Conseils (FIDIC) alongside the Draft Act on the Resolution of Payment Disputes in Construction Contracts, which is currently under consideration in Thailand. The analysis highlights the legal status, enforceability, independence, efficiency, and economic cost-effectiveness of dispute boards. A key finding reveals that, in the absence of specific legislation, the operation of DABs and DRBs in Thailand relies solely on the contractual agreement between the parties, and their enforceability must be linked to the arbitration process under the Arbitration Act B.E. 2545 (2002) to be effective in practice. The article further expands its analysis by incorporating comparative case studies from Asian jurisdictions and other countries with dedicated legislation, as well as by assessing emerging trends in the development of dispute board mechanisms. It concludes that enhancing the proposed Draft Act should not only provide disputes arising from payment but also covers, all types of disputes arising from construction contracts which would strengthen the overall effectiveness and applicability of the mechanism. Such reform would contribute to greater legal certainty and economic stability in Thailand’s construction industry, particularly in the post-crisis era in which government policy emphasizes large-scale infrastructure investment as a means of economic stimulation.
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