A decision of the Court of Appeal in Singapore has led to FIDIC issuing guidance on its 1999 Conditions of Contract.
The case (CRW Joint Operation v PT Perusahaan Gas Negara (Persero) TBK  SGCA 33) examined the grounds to set aside arbitration awards in construction-related disputes. If, within 28 days after receiving a dispute adjudication board (DAB) decision, either party gives notice to the other party that it is dissatisfied with the decision, the decision will be binding but not final. This case looked at whether a party may refer to arbitration the failure of the other party to comply with a DAB decision that is binding but not final.
In response to this case, the FIDIC Contracts Committee has prepared a guidance note to address the enforcement of DAB decisions that are binding but not yet final. The note aims to clarify clause 20 of the general conditions and includes a new clause 20.4, replaces the wording of clause 20.7 and adds wording to clauses 14.6 and 14.7. It is “highly recommended” that this wording should be used in the Red Book, Silver Book and Yellow Book after 1 April 2013.