To work most effectively, Public Private Partnerships (P3s) are structured to share risk and reward between the public partner and the private partners. The P3 structure often integrates all elements of the project into one enterprise: planning, programming, environmental permitting, financing, procurement, design, construction, setting of user fees, operations, maintenance, capital asset replacement and hand back.
A Dispute Board is defined as a board of impartial professionals formed at the beginning of the project to follow construction progress, encourage dispute avoidance, and assist in the resolution of disputes for the duration of the project. A Dispute Review Board (DRB) is a variant of Dispute Boards used primarily in the United States and Canada. The primary distinguishing feature of a DRB as contrasted with other DB forms is that a DRB issues non-binding recommendations that the parties are free to accept or reject.
This article explores how DRBs can be used effectively to help P3 projects avoid disputes, if possible, and resolve them in a timely and effective manner, if necessary.