A decision should be made on whether to set up a DRB on a permanent basis. Setting a DRB up on a permanent basis has the advantage of allowing it to maintain familiarity with the project and avoid disagreements on the arrangement of the DRB itself, including the appointment of the board.
This cost implication has led to the practice, in many jurisdictions, of DRBs not being established until after a dispute arises to save on the costs of retaining the board members at financial close. Setting up a DRB on an ad-hoc basis may be considered less costly, as the board is only engaged when a dispute has arisen. Although, in the context of a large PPP, they are only a small percentage of the total project cost. It can also cause several difficulties, as if the parties have to agree jointly to the board members, this process will be less simple once a dispute is already in motion and it will further delay the resolution of the dispute.
It may not be necessary for the DRB to be established for the entire duration of a PPP contract, considering the costs involved in having a DRB for the entire duration. The likelihood of complex disputes decreases after the construction phase has ended and a DRB may be able to function at a reduced capacity during operations. For example, it could meet less frequently, or the board could be reduced in number, perhaps from three members to one member. The members may also need to change based on the different experiences required for the relevant project activities in the operations phase. A DRB can also be appointed, subject to review every three or five years, giving the parties a chance to decide not to re-appoint the DRB if they decide it is no longer required.