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Hi all,
On the basis of having all our subjects replied, I would like to answer on this question.
The standing dispute board means that it constituted at the beginning of the contract and maintained throughout the performance of the contract and ad hoc, constituted if and when a dispute arises. There are certain obvious advantages to a standing dispute board: The parties would normally find it easier to agree upon the members of the board at the beginning of a project than after a dispute has arisen. One of the principal advantages of the dispute board procedure — namely, the members’ familiarity with the project (which, among other things, enables them to render decisions quickly) — depends upon the board being in existence throughout the project, in order to receive reports and other documents, to make periodic site visits, etc. On the other hand, a standing dispute board will naturally be more expensive than an ad hoc dispute board, since the members of a standing board must be paid a retainer and reimbursed for their expenses incurred during site visits, meetings with the parties, and their own deliberations. These additional expenses may seem excessive if the initial phase of the contract involves a relatively long period of design, procurement, and/or manufacturing away from the site.
Regards,
J. Daniel