02.09.2014

Rebuilding New Zealand: A case for Dispute Resolution Boards

Download pdf paper

Download Powerpoint slides

New Zealand sits on the cusp of the largest construction boom in a generation.  One of the challenges (and opportunities) that this presents is how best to manage the inevitable increase in building and engineering disputes.  While this is especially true for the Canterbury rebuild, the pressures will be felt around country.

The attached paper, which was prepared for the 2014 AMINZ dispute resolution conference, discusses and aims to raise awareness of Dispute Resolution Boards (DRBs) as an alternative method of dispute resolution for construction projects.

The DRB concept was developed nearly forty years ago, yet DRBs have been adopted in only a handful of New Zealand projects to date.  It follows that there is scope to increase their use nationally, with potentially significant savings to principals and head contractors from avoiding or minimising costly disputes at the end of a project.

The work of a DRB is in the nature of ‘spot arbitration’ with a board of independent persons empowered by contract to assist the parties and make determinations during the life of the project.  What distinguishes it from other dispute resolution processes is that the board is already familiar with the project and benefits from considering issues contemporaneous with the works.  As a result, there is an emphasis on avoidance as much as resolution, and DRBs have an impressive track record around the world.

The paper focuses on DRBs as a dispute resolution method in a New Zealand context.  In doing so it explores what is driving New Zealand’s looming construction boom and the high likelihood of increased claims.  While DRBs are traditionally suited to infrastructure projects (because of the associated costs), the paper also explores the idea of mini-DRBs for smaller projects, including whether central or local government, or professional organisations like AMINZ, have a part to play in promoting and facilitating their use.

Please click on the link above for a full copy of the paper and associated PowerPoint slides.

If you would like further information , please contact Nick Gillies.

Do you need expert legal advice?
Contact the expert team at Hesketh Henry.
Kerry
Media contact - Kerry Browne
Please contact Kerry with any media enquiries and with any questions related to marketing or sponsorships on +64 9 375 8747 or via email.

Related Articles / Insights & Opinion

Supreme Court Defines the Scope of Duty and Damages in Professional Negligence: Routhan v PGG Wrightson Real Estate Ltd [2025] NZSC 68
In a significant judgment with implications for professionals who provide advice or information, the Supreme Court of New Zealand in Routhan v PGG Wrightson Real Estate Ltd [2025] NZSC 68 has clarifie...
15.07.2025 Posted in Disputes
construction meeting e
Referring to Other Documents and When to Bring Proceedings: The High Court Provides Useful Guidance in Issuing and Relying on Payment Schedules
The High Court has provided useful guidance for contractors in issuing and assessing payment schedules under the Construction Contracts Act 2002 (CCA) in its recent decisions in Chillex Services Ltd v...
10.07.2025 Posted in Construction
Rewriting the Risk: Lessons from John Sisk & Son Ltd v Capital & Centric (Rose) Ltd [2025] EWHC 594 (TCC)
A recent decision by the English High Court, John Sisk & Son Ltd v Capital & Centric (Rose) Ltd [2025] EWHC 594 (TCC), considered the interpretation of a risk allocation provision under a besp...
09.07.2025 Posted in Construction & Disputes
Can Contractors Terminate for Repeated Late Payment? Key Lessons from Providence v Hexagon
The decision of the English Court of Appeal in Providence Building Services Ltd v Hexagon Housing Association Ltd [2024] EWCA Civ 962 provides important guidance on a contractor’s termination right...
09.07.2025 Posted in Construction & Disputes
Property
Make Your Premises Good Again
With all the time, effort and cost that goes into taking on a new lease of commercial premises, what happens when it comes time to move on can seem unimportant. It is not surprising, then that make-go...
25.06.2025 Posted in Property
Flooded car
Flooding due to overland flow paths and damaged drainage
Persistent heavy rainfall across the country often results in damage to property due to flooding caused by overland flow paths and defective drainage.  But who is responsible for the cost of the dama...
17.06.2025 Posted in Climate Change & Property
Understanding Indirect Privacy Notification: What you need to know
The Privacy Amendment Bill (the Bill), if passed into law, will require agencies to notify individuals when their personal information is collected from a source other than the individual themselves, ...
16.06.2025 Posted in Corporate & Commercial & Employment
SEND AN ENQUIRY
Send us an enquiry

For expert legal advice, please complete the form below or call us on (09) 375 8700.