Asia apparently needs US$1.7 trillion of infrastructure per year from 2016 to 2030. Infrastructure projects are renowned for cost and time overruns as they are typically complex and involve multiple parties. Disputes are often unavoidable and will lead to delays in higher costs if not managed properly.
Under the Protocol, differences will be proactively managed to prevent them from escalating into disputes. From the outset, the parties to a project will appoint a Dispute Board comprising up to 3 neutral professionals. The Board members will be experts in relevant fields such as engineering, quantity surveying and the law. The Dispute Board will follow the project from start to finish and manage issues through a range of customised dispute avoidance and resolution processes
Building on international best practice, the key aspects of the Protocol are:
A proactive dispute prevention approach is adopted. The Dispute Board is appointed from the start of the project, not waiting until disputes have developed and are entrenched. This prevents matters snowballing out of control.
The Protocol provides for a wide range of methods to help address disputes should they arise. This includes mediation, opinions and determinations.
The Protocol has professional and administrative support through the Singapore International Mediation Centre and the Singapore Mediation Centre. Both will assist with identifying and appointing board members, administrative services (physical meetings, escrow arrangements, other administrative services).
Mediation as a business tool may prevent time and cost overruns in specific contracts and foster positive commercial relationships that may generate future opportunities. While pre-dispute mediation strategies are already being used effectively for large-scale projects, the benefits are equally available to parties engaged in smaller projects by tailoring the process appropriately.
1 Tailored Commercial Mediation Options: What are they, and how can a sceptical market be encouraged to try them? Mark Kelly, Barrister & Commercial Mediator, July 2015
ReSolution | June 2020
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ABOUT THE AUTHOR
Paul Sills is a barrister who draws on his years of commercial and legal experience to provide timely and cost-effective solutions for his clients. Paul is also an experienced mediator specialising in the early resolution of disputes.
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