Dispute Review Boards Effects on Bid Prices

By Kathleen M. J. Harmon

Abstract:The topic of the effectiveness of dispute review boards as the impetus for reducing a contractor’s bid pricing was a part of the first US study exploring how those within the construction community perceive the effects the dispute review board(DRB) process has on conflicts within the construction industry. The examination of the cost issues regarding this innovative ADR technique by those who actually have experience using it will bring forth a better understanding of its cost effectiveness and the value or lack thereof it brings to the project. There are those within the industry who question the cost savings of a DBR. Does it result in lower bid prices? Can the “savings” be quantified? These are important questions considering the fact that both owners and contractor’s desire cost efficiency with any new product or idea. This article will discuss the portion of the national study as it regards DRB’s influence on bid costs.
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