FIBICNBB Appioach in iespect of Bispute Aujuuication Boaius

Bi. uotz-Sebastian Bok, Beilin

12

FIBIC
S
baseu Bispute Aujuuication Boaius (BABs) anu theii coiielatives unuei the FIBIC
NBB haimoniseu veision, Bispute Boaius, have two puiposes. They help avoiu uisputes
anu they ueciue on unavoiuable uisputes. Bispute avoiuance is as impoitant as uispute
iesolution. This uualistic concept has a wiue acceptance thioughout the woilu anu has to
some extent become the inteinational stanuaiu in the constiuction inuustiy. It is useu
foi public woiks anu infiastiuctuie piojects, but also foi piivately financeu piojects,
albeit in the piivate sectoi the ieuuceu iole of a uispute iesolvei pievails. The concept
has also been testeu in a Civil Law context
4
. Since uispute aujuuication is supposeu to be
effective, FIBIC has opteu foi binuing BAB uecisions, a concept which may leau into the
uiscussion on the enfoiceability of BAB uecisions
S
. Ny papei will focus on:
Bispute Avoiuance piactice
Civil Law suiiounuings
The binuing effect of BAB uecisions.
In what follows, the opeiation of BABBBs is uiscusseu in the context of the mouel useu
in the FIBIC contiacts (1999 euition)
6
. The so calleu NBB haimonizeu veision (NBB) of
the FIBIC Reu Book 1999 hau been fiist publisheu in 2uuS anu then upuateu in 2uu6,

1
The authoi is a membei of the }ICA stuuy team foi the implementation of Bispute
Boaius anu a FIBIC listeu aujuuicatoi anu was also involveu in the assessment of FIBIC
aujuuicatois on the national level in }apan, ueimany anu Fiance.
"
The authoi takes the oppoitunity to thank Piof. Boug }ones foi his uiligent pioof
ieauing anu veiy welcomeu comments.
S
FIBIC = Inteinational Feueiation of Consulting Engineeis (Fiench: Fuiation
Inteinationale ues Ingnieuis Conseils)
4
In paiticulai in Botswana, Polanu, Romania anu South Afiica. But to the knowleuge of
the authoi theie aie also BBs in ueimany, Kazakhstan, Nali anu Tuikey.
S
See the iecent aiticles fiom Seppl, Bow not to inteipiet the FIBIC Bispute Clause,
[2u12] ICLR 4 et sq.; uillion,Enfoicement of BAB Becisions unuei the 1999 FIBIC
Conuitions of Contiact, [2u11] ICLR S88 et seq.; see also !"# %&'() *+,-.)'&( /0 12
1,-34.5..( 6.4 7,8.-. 91,-4,-&: 2;< |2u11j SuCA SS; ICC Case No 1u619, |2uu8j ICAib
Bull No 2, 8S.
6
This suite of contiact foims incluues the Conuitions of Contiact foi Constiuction (Reu
Book), the Conuitions of Contiact foi Besign & Builu (Yellow Book) anu the Conuitions of
Contiact foi EPC Tuinkey Piojects (Silvei Book). It also iefeiieu to as the Rainbow
Euition 1999.
2uu7 anu 2u1u
7
. The auvanceu FIBIC appioach to BABs is to be founu in the FIBIC uolu
Book
8
.
1. Bispute Aujuuication Boaius anu Bispute Boaius
FIBIC foims of Contiact suggest eithei a thiee membei oi a one membei Boaiu. If the
Paities fail to agiee on the appointment of a membei (oi membeis) eithei paity may file
a iequest to the FIBIC Piesiuent
9
in oiuei to seek the appointment of any of the Boaiu
Nembeis. The Boaiu shall begin its activities following the signing of a Bispute
Aujuuication Boaiu Agieement incoipoiating ueneial Conuitions of Bispute
Aujuuication Agieement anu the Pioceuuial Rules. The Boaiu membeis aie inuepenuent
expeits anu not employees oi agents of eithei the Employei oi the Contiactoi. Boaiu
membeis shall not assign oi subcontiact any of theii seivices oi uuties. The Boaiu shall
visit the Site anu meet with iepiesentatives of the Paities anu the Engineei at iegulai
inteivals, at times of ciitical constiuction events, at the wiitten iequest of eithei paity.
The timing of Site visits shall be as agieeu among the Employei, the Contiactoi, anu the
Boaiu, but failing agieement shall be fixeu by the Boaiu. Site visits shall incluue an
infoimal uiscussion of the status of the constiuction of the Woiks anu an inspection of
the Woiks. 0pon joint iequest of the paities the Boaiu may submit iecommenuations
anu opinions. Whenevei a uispute will be iefeiieu to the BAB it will heai the case anu
make a uecision within 84 uays. 0nlike an aibitial tiibunal the Boaiu is authoiiseu to
investigate the meiits
1u
. Noimally heaiings will be conuucteu at the Site. Bowevei, any
othei location that woulu be moie convenient anu still pioviues all iequiieu facilities
anu access to necessaiy uocumentation may be utilizeu by the Boaiu. The Boaiu may
also pioceeu without oial heaiings. Aftei the heaiings aie closeu, the Boaiu shall meet in
piivate in oiuei to ieach a uecision. The Boaiu's uecision, togethei with ieasons, shall be
seiveu in wiiting to both Paities. The uecision shall be baseu on the peitinent Contiact
piovisions, applicable laws anu iegulations, anu the facts anu ciicumstances involveu in
the uispute.
FIBIC Boaius have juiisuiction foi all uisputes which aiise out of the Contiact oi in
connection with the Contiact. A Boaiu may typically open up, ieview anu ievise any
ceitificate, ueteimination, instiuction, opinion oi valuation of the Engineei (Reu &
Yellow Book) oi Employeis Repiesentative (Silvei & uolu Book) as the case may be. A
BAB uecision shall be binuing on the Paities who shall give piompt effect to the uecision.

7
The NBB foim foims pait of the NBBs Stanuaiu Biuuing Bocuments anu is in
piinciple manuatoiy foi use by boiioweis.
8
This is the Besign, Builu anu 0peiate foim of Contiact which was publisheu fiist in
2uu8.
9
FIBIC holus a list of assesseu aujuuicatois. The thiee uays' assessment takes place
eveiy thiee yeais.
1u
As emphasiseu by the Couit in: !"# %&'() *+,-.)'&( /0 12 1,-34.5..( 6.4 7,8.-.
91,-4,-&: 2;< |2u11j SuCA SS in citing Chein, Bispute Boaius, 1
st
euition, at p. 192.
It shall be given in accoiuance with Sub-Clause 2u.4 of the FIBIC Conuitions of Contiact
(1999).
Bence unlike Boaius unuei the Statutes in Singapoie anu Austialian Laws FIBIC Boaius
have full juiisuiction on all matteis incluuing extension of Time foi Completion claims
anu othei matteis.
Aibitiation panels have juiisuiction to enfoice final anu binuing BAB uecisions (see Sub-
Clause 2u.7 FIBIC 1999).
2. Bispute Avoiuance Piactice
A FIBIC BAB is ueemeu to be a complementaiy contiact management tool in the
enueavoui to implement both best engineeiing anu management piactice on Site. FIBIC
foims of Contiact pioviue two uiffeient suggestions. The FIBIC Reu Book (1999)
suggests a !"#$%&"&' )*+ whilst the FIBIC Yellow anu Silvei Book (1999) suggest the
use of %, -./ )*+0
11
. The FIBIC uolu Book (2uu8) shows the new tienu in that it
pioviues foi a 0'%&,1&2 )*+. Appaiently FIBIC is now moie inclineu to suggest
peimanent BABs foi uesign & builu piojects. The FIBIC 0puate Task uioup intenus to
change the iecommenuations fiom au hoc to stanuing BABs foi all FIBIC foims of
Contiact. The ieason is that FIBIC has become awaie of the auvantages of uispute
avoiuance piactices anu seivices that can be offeieu anu pioviueu by peimanent BABs,
but not by an au hoc BAB.
Theie aie many auvantages of stanuing BABs
12
. Peimanent BABs assist in avoiuing
uisputes. Avoiuing uisputes means to save cost anu time. Piolongeu uisputes may
empoison the woiking atmospheie anu seeu suspicion anu suspiciousness. Piolongeu
unceitainty about the financial situation (having impact on the neeu to take anu
maintain financial aiiangements) anu unceitainty iegaiuing Time foi Completion
(iesulting in constiuctive acceleiation anuoi foieseeable liability foi uelay uamages)
shoulu be avoiueu. Also, the availability of expeits
1S
may help in uiscussing anu finuing
attiactive anu beneficial technical, commeicial anu legal solutions (e.g. an appiopiiate
(yet missing) iemeuy foi failuie to comply with a paiticulai contiactual uuty oi the

11
In 1999 the au hoc concept was piefeiieu foi the puiposes of the FIBIC Yellow Book
anu the FIBIC Silvei Book because the Contiacts Committee anu the Task uioup believeu
at that time that unuei a uesign & builu contiact the paities woulu piefei to have
sepaiate anu inuiviuual expeits foi civil woiks, mechanical oi electiical woiks oi foi the
uesign on a case by case basis. Bowevei, this concept implies the iisk of contiauicting
uecisions anu avoius uispute avoiuance techniques.
12
See Chapman, Bispute Boaius on majoi infiastiuctuie piojects, [2uu9] Nanagement,
Piocuiement anu Law, vol. 162, 7 et seq.
1S
FIBIC aujuuicatois waiiant anu iepiesent by means of the BAA that they aie
expeiienceu in the woik, which the Contiactoi is to caiiy out unuei the Contiact anu
expeiienceu in the inteipietation of contiact uocumentation. To the opposite the ICC BB
iules uo not iequiie such expeiience at all, though it is obviously piefeiable to have
expeits on boaiu.
intiouuction of an incentive to complete the Woiks in time). In othei woius a BAB may
avoiu piacticing business as usual anu suggest tailoi-maue solutions foi eveiyuay issues.
The authoiity of iespecteu anu cieuible expeits may pievent both paities fiom losing
face.
The uispute avoiuance featuies aie the following: At any time the paities to the contiact
may jointly iequest to give an opinion anuoi iecommenuation on technical anuoi
contiactual issues. The BAB is a job-site instiument, becoming awaie of issues anu
upcoming pioblems. As pioblems aiise, it may put issues anu upcoming uisputes on the
agenua of joint meetings, which typically take place uuiing the iegulai Site visits. The
BAB may also investigate facts anu sometimes have uiiect access to the banks anu
funuing institutions in oiuei to uiscuss the issues with them, e.g. if "no objections" aie
necessaiy but missing. The meie fact that a BAB is theie may have a beneficial effect in
that it may help the Engineei to ueteimine things piopeily, without fuithei
consiueiation of aiguments that uo not have a contiactual souice oi justification (e.g.
buuget oveiiun). 0f couise, whilst uoing so the BAB will have to avoiu any peiception of
bias. Bowevei, the swoiu of Bamocles that is bias shoulu not pievent the BAB fiom
acting as a uispute avoiuance boaiu (BAB).
S. Civil Law suiiounuing
The basic anu funuamental piinciple, which allows agieements on uispute aujuuication
is usually iefeiieu to as the piinciple of contiactual fieeuom
14
. This piinciple is
iecognizeu woiluwiue, both in Civil Law countiies like Inuonesia (see Aiticle 1SS8 Civil
Coue), Philippines (see Aiticle 1Su6 Civil Coue), South Afiica anu Sii Lanka (Butch
Roman Common Law) oi vietnam (see Aiticle S89 Civil Coue) anu in Common Law
countiies like Inuia, Nalaysia (Section 1u Contiact Act 19Su), Pakistan oi Singapoie.
Contiactual fieeuom typically incluues the iight of the paities to confei the iight of
ueteimination of the peifoimance upon a thiiu peison (see Aiticle 1Su9 Civil Coue
Philippines)
1S
. In any case state buuget laws, auuiting laws anu piocuiement laws
shoulu be consiueieu
16
. Bowevei, typically the above laws anu constiaints uo not
pievent public authoiities fiom making use of best management piactice. Neveitheless,
it may be wise to consult all state authoiities involveu in the tenueiing piocess,

14
Chaiiet, A Common Law of Constiuction Contiacts - oi vive la Biffience., [2u12]
ICLR 72 et seq.
1S
See also the compaiative stuuy of Tallon, La uteimination uu Piix uans les Contiats,
1989
34
ueiman piocuiement iules incluue the following piovision: In auuition, uispute
iesolution pioceeuings may be agieeu upon. The agieement shoulu be maue when the
contiact is executeu (see 18 (S) v0BB). In Fiance contiacts foi public woiks aie
ueemeu to constitute an act of public auministiation. Thus in piinciple uisputes aiising
out of a contiact foi public woiks shall be iefeiieu to the auministiation couits. Ait. 127
Fiench Piocuiement Law (Coue ues Naichs Publics) pioviue a thiee tiei appioach:
Conciliation, Comits consultatifs ue ieglement amiable ues uiffienus ou ues litiges
ielatifs aux maichs publics, Aibitiation.
piocuiement anu pioject execution piocess in oiuei to make suie that theie is a
common unueistanuing on the use of BB.
In the last twenty yeais FIBIC foims of contiact have been incieasingly utiliseu in Civil
Law countiies
17
. In paiticulai in Eastein Euiope anu the foimei Soviet 0nion iepublics
in cential Asia (Azeibaijan, Kazakhstan, Tuikmenistan, 0zbekistan), as well as in paits of
Afiica (Botswana, Cameioon, South Afiica), East Asia (Inuonesia, Philippines, Sii Lanka,
vietnam) anu the Niuule East (Bubai, Abu Bhabi, Qatai) FIBIC foims of contiacts aie
welcomeu anu aie fiequently in use. Since FIBIC foims uo iecommenu anu suggest the
use of BABs, it is ieassuiing foi Civil Law paities to ieceive confiimation that BABs aie
compatible with Civil Law systems.
As pointeu out above most Civil Law juiisuictions iecognize the twin piinciples know as
the piinciples of 5#"",.$ .5 /.&'#%/' anu !%/'% 06&' 0"#7%&,%
18
. Also the 0niuioit
Piinciples on Inteinational Commeicial Contiacts (0P) iecognize these funuamental
piinciples of contiact law
19
. Since FIBIC BABs ueiive theii poweis exclusively fiom the
contiact they can be calleu a cieatuie of contiact
2u
. It is beyonu uoubt that in geneial
BABs may also be agieeu to anu opeiate in a Civil Law suiiounuing. Bowevei, theie aie
some paiticulaiities to be uiscusseu.
Typically the states anu juiisuictions confei uispute iesolution poweis upon theii
couits. Even the aumissibility of aibitiation may be questionable without the ielevant
state expiessly allowing foi piivate uispute iesolution piactices
21
. Thus in piinciple it is
necessaiy to assess whethei the involveu states oi juiisuictions uo allow the paities to
contiact out of access to the state couits, whethei only tempoiaiily (uispute
aujuuication subject to fuithei ieview) oi fully (aibitiation). Since uispute aujuuication
is not intenueu to ensuie compliance with all legal niceties whilst the stanuaius of
aibitiation aie moie anu moie iecognizeu to substitute couit pioceeuings it is suggesteu
that uispute aujuuication clauses shoulu nevei stanu alone anu that the FIBIC appioach
which pioviues that BAB uecisions can be ievieweu in aibitiation avoius uifficult
uiscussions on the aumissibility oi legitimacy of BAB clauses anu agieements.

17
See also the authoi's aiticle in: [2u11] ICLR 412 et seq.
18
Chaiiet, A Common Law of Constiuction Contiacts - oi vive la Biffeience, [2u12] ICLR
72 et seq.
19
In accoiuance with Aiticle 1.1 0P fieeuom of contiact is a basic piinciple in the
context of inteinational tiaue. Puisuant to Aiticle 1.S 0P a contiact valiuly enteieu into
is binuing upon the paities. Foi a moie uetaileu uiscussion of an inteinational lex
constiuctionis see Bok, FIBIC veitige im Lichte uei 0niuioit Piinzipien als
veitiagsstatut (FIBIC Contiacts in the Light of 0niuioit Piinciples as the piopei law of
the Contiact), [2uu8] Zeitschiift fi ueutsches unu inteinationales Bauiecht (ZfBR) 11S
et seq.; Nolineaux, Noving Towaiu a Lex Neicatoiia - A Lex Constiuctionis, 14 [1997]
Intl Aib., No 1, SS et seq.
2u
Chapman, Bispute Boaius on majoi infiastiuctuie piojects, [2uu9] Nanagement,
Piocuiement anu Law, vol. 162, 7 et seq.
21
See the foimei Aiticle 2u61 Fiench Civil Coue (abiogateu in 2uu1).
Civil Law juiisuictions typically classify contiacts in accoiuance with what aie calleu the
nominateu contiacts
22
foi which the Civil Coues anu the Civil Law pioviue
complementaiy anu manuatoiy piovisions. If, foi example, paities agiee on a contiact
foi seivices uiffeient complementaiy iules apply than to a contiact foi woiks, etc. In
teims of uispute iesolution the piematuie classification is quite often that a uispute
aujuuication agieement shoulu be ueemeu to constitute eithei an aibitiation agieement
oi an agieement on expeit ueteimination. A moie sophisticateu analysis involves the
consiueiation of the typical natuie anu elements of uispute aujuuication which incluue
compliance with natuial justice (oi similai appioaches), a less foimal appioach
iegaiuing the conuuct of the pioceuuie than in aibitiation, the binuing effect of a BAB
uecision anu the inquisitoiial poweis of the BAB uuiing the uecision making piocess.
Taking into account those elements, the classification piocess coulu be such that uispute
aujuuication is neithei aibitiation noi expeit ueteimination but something in between
oi special, thus sui geneiis. If so, one must caiefully consiuei the full law in oiuei to
unueistanu the set of iules that may be applicable as the complementaiy uispute
aujuuication law
2S
.
Civil law typically allows agieements that empowei a thiiu peison to ueteimine
specifieu elements of a contiact anu the iesulting peifoimance. Thus a contiact can be
maue that uoes not alieauy specify the exact amount of woiks oi seivices against which
a specifieu amount of money shall be paiu. Accoiuing to ueiman law a thiiu peison can
be appointeu to ueteimine contiactual peifoimance (see Section S17 et seq. ueiman
Civil Coue). The ueteimination will be binuing on the paities unless the ueteimination is
giossly inequitable (see Section S19 ueiman Civil Coue). Similaily, puisuant to Section
1Su9 Civil Coue of the Philippines "the ueteimination of the peifoimance may be left to
a thiiu peison, whose uecision shall not be binuing until it has been maue known to both
contiacting paities".
Thus the uispute aujuuication clauses have to be ieau anu constiueu as well as to be
applieu in light of anu in accoiuance with the elements of such fuithei iequiiements.
4. Binuing Effect of BAB uecisions anu enfoiceability of BAB uecisions
The binuing effects of a BAB uecision uepenu on what has been agieeu upon. 0nuei
FIBIC theie is no uoubt that the paities agiee when they make theii contiact that they
shall give effect to any futuie BAB uecision. To the extent that the paities to the
aujuuication clause have agieeu that they shall give effect to a iesulting BAB uecision,
the question aiises whethei this agieement is enfoiceable. In othei woius it must be
checkeu whethei an agieement accoiuing to which the paities have agieeu to be bounu

22
Typical nominateu cotiacts aie: locatio conuuctio opeiis (contiact foi woiks), locatio
conuuctio opeiaium (contiact foi seivices), sale contiacts anu loan contiacts.
2S
See foi examples Bok, Bispute Aujuuication in Civil Law Countiies, [2u11] ICLR 412,
4S4
to the ueteimination of the peifoimance by a thiiu peison can be enfoiceu anu what aie
the elements that aie iequiieu to be met in oiuei to enfoice the uecision.
The paities uo not agiee themselves inuepenuently eithei to uo oi to omit something.
Rathei the paities agiee to peifoim oi accept what the thiiu peison has oi hau
ueteimineu. Thus the uuty to give effect to a BAB uecision which in itself uoes not iesult
uiiectly fiom the intentions of the paities (this woulu constitute a legal tiansaction -
"acte juiiuique") but is the piofessional opinion of a thiiu peison (thus a "fait juiiuique"
as opposeu to an "acte juiiuique") shoulu piobably be uealt with a bit uiffeiently than a
meie uuty to pay a specific amount of money as inuepenuently agieeu by the paities. It
must be ueiiveu fiom the ielevant ciicumstances as uesciibeu above that the paities
ceitainly uiu not agiee to be bounu to any kinu anu type of uecision (iiiespective of
whethei a ceitain pioceuuie was followeu anu inuepenuent of whethei what hau been
agieeu on in teims of a contiact). Rathei it must be assumeu that the paities intentions
incluueu meiely those uecisions foi which they have confeiieu juuicial poweis on the
BAB (juiisuiction) anu which aie the iesult of a faii pioceuuie (natuial justice). Though
of couise the iequiiement of a faii pioceuuie shoulu be unueistoou subject to fuithei
qualification in accoiuance with the law, it shows that civil law juiisuictions will have to
acquaint themselves with the concepts of uispute aujuuication anu that the couits will
have to shape the elements of faii pioceuuie in accoiuance with what the paities have
anyway agieeu on in teims of the contiact. Since theie is veiy little expeiience with
FIBIC baseu uispute aujuuication in Civil Law countiies anu juiisuictions, with the
exception of piobably South Afiica anu Botswana, theie is still some unceitainty about
the binuing effects of uispute aujuuication uecisions.
0n the othei hanu it is uifficult to aigue that Civil Law juiisuictions aie unable to ueal
with uispute aujuuication anu othei alteinative foims of uispute iesolution than
aibitiation. The examples of the Italian "louo iiiituale"
24
anu similai contiactual
aibitiation in some 0S states show that iiiespective of some uifficulties civil law
piactitioneis might encountei, it is feasible to ueal with such featuies. In othei woius it
is acceptable that a thiiu peison may make a uecision on a uispute which uoes not have
legal foice (ies juuicata) in itself, anu which cannot be enfoiceu by means of simple
iegistiation of juugment
2S
.
0nuei FIBIC foims of contiact Sub-Clause 2u.4 cleaily says that the paities to the
contiact shall give piompt effect to any BAB uecision whethei meiely binuing oi final
anu binuing. The contiactual machineiy is such that the failuie to comply with any such

24
The Italian =&>& '--')3.=, hau been uiscusseu in veiy uetail by the ueiman Supieme
Couit. The couit helu that the =&>& '--')3.=, uoes not meet the elements of an aibitial
awaiu anu shall not be enfoiceu unuei the 19S8 New Yoik Convention; see ueiman
Supieme Couit? %3>8@,() A-&@ B0CD0CEBC F GGG H" IJKBD? [CEBJ] 7%# CJJI
2S
Foi a moie in uepth stuuy see Cassis, Pioblemes ue Base ue lAibitiage, SuS et seq.
who concuis.
BAB uecision constitutes a bieach of contiact anu may iesult in suspension of piogiess
anuoi teimination of contiact.
Sub-Clause 2u.7 FIBIC 1999 confeis upon the aibitial tiibunal juiisuiction to ueal with
the failuie to comply with a final anu binuing BAB uecision. Sub-Clause 2u.9 FIBIC uolu
Book follows a bioauei appioach. Theieunuei, a uispute with iegaiu the failuie to give
effect to a (meiely) binuing anuoi final anu binuing BAB uecision may be iefeiieu to
aibitiation. Whilst unuei Sub-Clause 2u.6 it is likely that the couit will heai the meiits
befoie gianting ielief, Sub-Clause 2u.7 FIBIC 1999 anu Sub-Clause 2u.9 FIBIC uolu Book
uo allow the aibitial tiibunal to giant specific peifoimance.
4. NBB Appioach
The multilateial Bevelopment Banks have incoipoiateu the FIBIC Conuitions of Contiact
in theii Stanuaiu Biuuing Bocuments foi Woiks. Cuiiently they use the haimoniseu
veision of the Reu Book which is baseu on a FIBIC licence. The Banks BAB oi BB policy
is not yet veiy cleai.
Puisuant to the Woilu Bank Piocuiement uuiuelines the conuitions of contiact shall
incluue piovisions uealing with the applicable law anu the foium foi the settlement of
uisputes. Inteinational commeicial aibitiation has piactical auvantages ovei othei
methous foi the settlement of uisputes. Theiefoie, the Woilu Bank iecommenus that
Boiioweis use aibitiation in contiacts foi the piocuiement of goous anu woiks. The
Bank shall not be askeu to name aibitiatois
26
.

In the case of woiks contiacts, supply anu
installation contiacts, anu tuinkey contiacts, the uispute settlement piovision shall also
incluue mechanisms such as uispute ieview boaius oi aujuuicatois, which aie uesigneu
to peimit a speeuiei uispute settlement. Nowheie is it mentioneu that BBs aie iequiieu,
albeit the Stanuaiu Biuuing Bocuments incluue the ielateu BB piovisions as suggesteu
by FIBIC, though the woiuing hau been changeu fiom Bispute Aujuuication Boaiu to
Bispute Boaiu.
In piactice the multilateial uevelopment banks uo not unanimously anu cleaily insist on
the use of BBs. Fiequently Employeis uelete BB clauses aiguing that they uo not comply
with the law. The tiuth is piesumably that the banks have no cleai policy on the
eligibility of BB cost anu that employeis like to save cost without knowing the
uisauvantages of such piactices. Bowevei theie is encouiaging news since }ICA has
staiteu an initiative foi the piomotion of the use of BBs which seems to be veiy
successful in that the Asian Bevelopment Bank seems to suppoit the }ICA plans.
S. Conclusion

26
It is unueistoou, howevei, that officials of the Inteinational Centie foi Settlement of
Investment Bisputes (ICSIB) shall iemain fiee to name aibitiatois in theii capacity as
ICSIB officials.
FIBIC foims of Contiact aie ueemeu to be suitable foi use with Civil Law suiiounuings.
0nueniably the FIBIC foims of Contiact incluue woiuing that uoes not ieflect a Common
Law appioach
27
. FIBIC foims of Contiact piomote best piactice in teims of contiact
management. This is the ieason why the FIBIC Reu Book anu the FIBIC uolu Book
intiouuce anu suggest stanuing BABs. They shall help avoiu uisputes anu to mange the
pioject piopeily. In teims of uispute iesolution, FIBIC foims of Contiact piomote a full
iange featuie since the BABs have juiisuiction on all type anu matteis that aiise out of
anu in connection with the Contiact. Noieovei FIBIC Foims of Contiact pioviue foi
binuing uecisions iathei than foi iecommenuations. The multilateial uevelopment
banks have auopteu this appioach. They aie moie anu moie convinceu that cost foi
stanuing BABs shoulu be eligible. Bowevei, it is fai fiom accuiate to suggest that FIBIC
contiacts anu FIBIC baseu BABs aie uniquely foi use in the public sectoi. Theie is a huge
numbei of piivate piojects implementing BABs, foi example in the mining anu oil & gas
inuustiy as well as in the fielu of aichitectuial piojects in the Niuule East.

27
See foi example Sub-Clause 11.9 - acceptance of the woiks which is not a Common
Law concept but a typical Civil Law appioach (foi example as pei Section 64u ueiman
Civil Coue oi Aiticle 1792 Fiench Civil Coue oi Aiticle 1719 Civil Coue of the
Philippines), in that the act of acceptance ielieves the contiactoi of liablity foi uefects
anu shifts the iisk of caie of the woiks to the employei.