Australian Dispute Boards usually comprise three independent people, appointed by the owner and the contractor at the commencement of a project to assist with the resolution of issues which arise during the construction of the project. The Dispute Board members will typically have between them significant experience in the delivery of similar projects, and the resolution of disputes arising out of such projects. The combined expertise of the Dispute Board members is typically a blend of engineering, project management and legal expertise. They are typically 'grey hairs' that are well respected by the parties and thus able to ask questions and express views which will be listened to, carefully considered and actioned.
The first, and most important, function of the Dispute Board is dispute avoidance. The Dispute Board meets with the parties regularly during the delivery of a project to discuss emerging issues and help the parties to resolve them on a consensual basis. This is akin to proactive mediation, and has been highly successful in resolving issues on major projects before they become intractable disputes.
Alongside this is a decision-making function. Either party to a dispute can refer it to the Dispute Board for a written determination. The Dispute Board's determination can be final and binding, interim-binding or non-binding, depending on what the parties agree when they establish the Dispute Board. In Australia, most Dispute Board determinations are interim-binding, i.e. binding unless and until overturned by subsequent court or arbitral proceedings.
If the Dispute Board's determination is not final and binding, the parties will usually agree that it is to be 'with prejudice', i.e. it can be submitted in any subsequent court or arbitral proceedings. Doing so is thought to reduce the likelihood of subsequent proceedings, as a court or arbitrator will likely pause for thought before departing from the determination of a wise group of people with detailed knowledge of a project's history and the matters in dispute.