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Christopher Chilton
1. Dispute Board Experience
The following are all examples of dispute adjudication boards listed in my FIDIC President’s List Application updated to July 2015 (items 13 and 14). All values are in USD equivalent.
1. Russia
Government/Private company – military
USD200 million
Silver Book
Chair of three member board
Decisions on disputes related to exchange rates, inflation, price fluctuation
One dispute to Notice of Dissatisfaction, others resolved
On-going involvement
2. Europe
LNG supply contract
USD500 million
Silver Book
Single member board
Decisions on disputes related to terminal construction (failure of subcontractor) and supply contract (award of late supply damages)
Decisions not challenged
On-going involvement including mediation
3. Europe
Supply of aviation assemblies - military
USD100 million
MF1 based provisions
Member of three member board
Client driven delays. Re-negotiation of the supply programme (mediation)
Decision involving delay payments (not challenged)
On-going involvement
4. Europe
Extensive signalling and track infrastructure upgrade
USD800 million
Yellow Book
Member of three member board
On-going involvement
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Christopher Chilton
5. Asia
Design and Build batch manufacturing plant
USD80 million
Red/Harmonised
Chair of three member board
On-going involvement
6. North America
Supply and installation of aerospace test facilities
USD50 million
Yellow Book
Single member board
Decisions on programme and quality issues
Decision on quality issue went to Notice of dissatisfaction – resolved in settlement period
On-going involvement
7. North America
Mining/infrastructure development
USD300 million
Internal conditions (based on IChemE)
Member of three member board
Many potential disputes on information available/not available at time of Tender
Some resolution by ad hoc mediation.
On-going involvement
8. Middle East
Supply and installation of equipment and associated building works
USD450 million
Yellow Book
Chair of three member board
Decisions on disputes related to application of price variation indices and the jurisdiction of the board (correctness of notices)
Three notices of dissatisfaction and one arbitration commenced (later agreed and arbitration halted)
Concluded
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9. Asia
Construction of aviation test facilities
USD180 million
Red Book
Member of three member board
Valuation of variations/certification
Four decisions – none challenged.
Concluded
10. Europe
Construction of infrastructure and PFI schools
USD600 million
PP2000 with DB added
Single member board
No disputes to DAB
Very much considered a first trial
Concluded
11. Europe
Combined Heat and Power plant
USD85 million
Red/Harmonised (construction), client’s own conditions (supply contract)
Single member board
Decisions on delays to supply contract driven by construction delays
Two disputes resolved
Concluded
12. Europe
Food manufacturing
USD30 million
Silver Book with MF1 approval process. Major subcontract based on JCT (Subcontractor joined to disputes)
Single member board
Decisions on conflict between main and subcontract conditions (duration of warranty)
Four disputes, two with Notices of Dissatisfaction
Concluded
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13. Europe
Power Distribution/Construction
USD200 million
Yellow Book
Chair of three member board
Approval of large claims related to delay
Single dispute put to ad hoc Board
Concluded
14. Europe/Russia
Electronics Manufacturing
USD40 million
Yellow Book
Single member board
Single dispute on bonus payments
Single dispute put to ad hoc Board
Concluded
2. Examples of other activities in dispute resolution
Peace mediation body in Switzerland. Worked with and supported Norwegian and Finish mediators in international conflict resolution mediation.
Mental Health. Acted as an advocate under the Mental Health Act (both Scotland, and, England and Wales).
Power Station Construction/pharmaceutical/petrochemical plants UK. Mediated between trades unions and employers to achieve settlements which allowed construction to continue.
3. Early avoidance of disputes
I have worked with many clients in the structuring of contracts to include mediation/arbitration/DB clauses. This has been for the following contracts; FIDIC, ICE, JCT, GCWorks, PP2000, NEC.
In particular I have worked with the UK public sector (local and central Government) to establish by workshops, the practical basis upon which disputes can be resolved should they arise.
In the private sector, I have carried out “potential risk of dispute analysis” in order to identify and mitigate likely areas of dispute at the outset (US – aerospace, UK – PFI/PPP contracts, France – precision engineering).
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