FIDIC reference
Clause 21 — Disputes and the DAAB
A multi-tier route: DAAB → notice of dissatisfaction → amicable settlement → arbitration.
Applies in: Red BookYellow BookSilver Book
The 2017 edition made the DAAB a standing board (Dispute Avoidance/Adjudication Board) rather than ad hoc. A dispute is referred to the DAAB, which decides within 84 days (21.4.3). A dissatisfied party serves a Notice of Dissatisfaction within 28 days (21.4.4); an amicable-settlement period of 28 days follows (21.5), then arbitration (21.6). Use the DAAB timeline calculator on this site to check the dates.
Key points
- The DAAB is a standing board (2017), not ad hoc.
- DAAB decision — 84 days from referral (21.4.3).
- Notice of Dissatisfaction — 28 days (21.4.4).
- Then amicable settlement (21.5) and arbitration (21.6).
How this works in practice
The main problem with Clause 21 in the region is not the quality of DAAB decisions but that the board is never constituted at all. The parties sign, defer agreeing members until a dispute appears, and by the time one does the mechanism does not work: members must be agreed, and by then there is neither goodwill nor time. Second, a DAAB decision is binding with immediate effect even where a Notice of Dissatisfaction has been served. A party that withholds compliance and waits for arbitration usually worsens its position.
Common traps
- The DAAB is not constituted within the period set in the Contract Data, leaving Clause 21 as decoration.
- No budget is allocated for the board, so the parties in effect sabotage visits and hearings.
- A Notice of Dissatisfaction is served late or without identifying what is disputed — the right to arbitrate is then exposed.
Versions: 1999 → 2017 → 2022
- 1999
Disputes were in Clause 20 (DAB), often ad hoc, with similar decision periods.
- 2017
Moved to a separate Clause 21; the DAAB became standing, with dispute avoidance added.
- 2022
The 2022 reprint clarified DAAB procedure and timing without changing substance.
Dispute resolution ladder
- 01 Engineer's Determination
A dispute starts with the Engineer’s determination under Sub-Clause 3.7 (except the Silver Book).
- 02 Reference to the DAAB
Referral of the dispute to the standing Dispute Avoidance/Adjudication Board.
- 03 DAAB Decision
The DAAB issues a decision; it is binding with immediate effect.
- 04 Notice of Dissatisfaction
A dissatisfied party files an NOD within the set time limit.
- 05 Amicable Settlement
A period to attempt an amicable settlement before arbitration.
- 06 International Arbitration
The final stage — arbitration (typically under the ICC rules).
Clause FAQ
Which FIDIC books use Sub-Clause 21?
The clause applies in Red Book, Yellow Book, Silver Book. Particular Conditions may change the standard risk allocation, so always check the project contract.
Must a DAAB decision be complied with if you disagree with it?
Yes. The decision is binding with immediate effect regardless of a Notice of Dissatisfaction; disagreement opens the route to arbitration but does not suspend compliance. Non-compliance can itself become the subject of separate proceedings, and in arbitration the party that ignored the decision ends up defending on two fronts.
How does a DAAB differ from arbitration in substance?
A DAAB works with a live project: it knows the site, watches events develop and can help the parties avoid a dispute before it is ever formalised. Arbitration examines a crystallised conflict on documents, costs materially more and takes years. That is why the dispute-avoidance function matters more than adjudication: an issue resolved during a board visit never reaches the stage where legal costs are counted.
Glossary terms
Related clauses
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Reference material, not legal advice. Always check your contract and the Particular Conditions.