Enhancing the Dispute Adjudication Board Process via Executive Sponsorships Used for Mega Oil and Gas Projects

In this article, the author explores how the best practice of the executive sponsorship in mega oil and gas projects can enhance the dispute adjudication board (DAB) process. The role of executive sponsors is overseeing project execution, support strategic decision-making and dispute resolution. The essence of the executive sponsorship is defined by credibility, ability to challenge assumptions, ability to provide clear directions, and maintain fairness. DAB is a contractually established alternative dispute resolution method which offers a high-quality dispute avoidance advice and real time decisions to resolve disputes by one or three selected experts in order to support execution of construction projects. After comparing the procedural rules of DAB with the mechanics of executive sponsorship as typically established on mega oil and gas projects, and ability to consider the parties’ underlying interests during the dispute avoidance or dispute resolution process, the authors identified that the essence the executive sponsorship may possibly enhance and improve the efficiency of the DAB. The authors formulated four suggestions to improve the DAB processes: (1) DAB members should be experienced construction professional with technical background, (2) DAB members should have extensive knowledges of the projects in which they are involved, (3) DAB should address parties’ underlying interests, and (4) DAB should possibly intervene before contract award.