Dispute Adjudication Board: Innovation in Georgia’s Alternative Dispute Resolution System

This article examines the Dispute Adjudication Board (DAB) as an innovative mechanism within Georgia’s alternative dispute resolution (ADR) system. As large-scale infrastructure projects proliferate globally, effective and timely dispute resolution becomes essential. While ADR mechanisms like arbitration and mediation are well-established, the DAB has emerged as a crucial tool, especially in projects backed by international financial institutions. Despite its growing importance, the DAB remains underregulated in Georgia, leading to challenges in its application. The study explores the evolution of the DAB, tracing its roots from the United States in the 1970s to its current international recognition, particularly within the FIDIC contract framework. It highlights how Georgia has begun integrating DABs into its legal landscape, despite the absence of a comprehensive regulatory framework. Through a comparative analysis of international and Georgian practices, the paper identifies key distinctions between the DAB and other ADR mechanisms, emphasizing the unique role of the DAB as a pre-arbitration step that ensures the continuation of project work while disputes are resolved. The research also addresses the enforceability of DAB decisions, examining contractual obligations and the challenges of ensuring compliance. By analyzing case law and arbitration practices, both globally and within Georgia, the paper underscores the need for clearer guidelines, and the potential for judicial and arbitration support to solidify the DAB’s role in the Georgian legal system. In conclusion, the paper advocates for the broader adoption of DABs in Georgia, recommending the development of a legal framework aligned with international standards to enhance the effectiveness of this dispute resolution method. This will not only benefit the country’s infrastructure development, but also strengthen its position in the global market by aligning with international best practices.