ICM SERVICES: Issue Review Boards® (IRB®) / Dispute Review Boards

(Referred to by some as a Dispute Review Board) A panel of neutrals established prior to commencement of the project to maintain familiarity with a project throughout construction. The IRB® meets regularly, and as requested by the parties, to review issues and make non-binding Recommendations for their resolution. The owner and contractor each select a neutral from ICM, LLC ’s panel. The two neutrals then select a third who becomes the Lead Member of the IRB®. Both the owner and the contractor must approve all of the neutrals.

A survey conducted in September 2003 by the Dispute Review Board Foundation showed that Dispute Review Boards had been used in all types of construction projects for 1057 projects totaling $77.7 billion. Of these projects, 1285 formal recommendations were issued with only 28 recommendations taken beyond the DRB process - a success rate of 97.8%! Issue Review Boards® have been used in all types of construction processes, from tunneling and underground to highway and hi-rise projects.

The Issue Review Board® process allows for issues to be dealt with immediately, before they have a chance to escalate. IRB® panel members are knowledgeable in the particular industry at hand and therefore can utilize their expertise to find creative solutions. IRB® members bring a neutral and objective perspective to the projects, and provide all parties with a forum to present their side of the issue. Win-win solutions are always possible. In addition, the IRB® does not displace other dispute resolution mechanisms; therefore if the recommendations are not to the liking of the parties, options such as arbitration or litigation may still be pursued.

Administering the IRB® process internally can be very difficult. Locating panelists with the appropriate industry experience and a high level of dispute resolution training is not easy. Maintaining neutrality amongst the various players can be tricky. Keeping track of paperwork and coordinating the process can become a full-time job.

As an example, a report issued by the Florida Department of Transportation, Office of Inspector General, surveyed the FDOT Issue Review Board® process, which was administered internally to 108 projects in 2000-2001. The report uncovered some unsettling results. Specifically, not all members serving on their panel were found to have adequate training and only a small percent of the panelists available staffed most of their Boards (only 5 of the candidates accounted for over half of the monies paid in the two years). Moreover, the report discovered insufficient record keeping of essential DRB documents-in short, some of the internal administration was faulty. As you can see, effective internal administration of an Issue Review Board® process is complicated.

ICM offers not only an extensive panel of neutral IRB® experts, but also administration of the process in an efficient, impartial, and thorough manner.

Because delayed projects are costly from both a financial and time perspective, parties are wise to involve an IRB to eliminate uncertainty and the risk of litigation.

For a copy of ICM’s Issue Review Board® Rules and Procedures, please contact us.

Issue Review Board® and IRB® are Registered Trademarks of the Institute for Conflict Management, LLC.