Dispute Boards in International Construction Contracts: A Real-Time Dispute Resolution Mechanism

Infrastructure projects are characterized by a high incidence of contractual disputes, a phenomenon that stems from the inherent complexity of their operational dynamics and the long-term nature of their execution. In this environment, conflicts among the parties involved are not only frequent, but have become a structural component of the construction process itself. The sector’s sensitivity to disagreements, combined with the multiplicity of stakeholders pursuing divergent interests, creates a setting particularly prone to disputes and litigation.
Within this framework, such projects are often structured through EPCM (Engineering, Procurement and Construction Management) contracts, under which the contractor manages and coordinates engineering, procurement, and construction activities without directly assuming construction risk, or through turnkey contracts, under which the contractor assumes the comprehensive obligation to deliver the completed and operational project.