Tracks formal disputes — beyond initial claims that couldn't be settled by negotiation. Logs DAB (Dispute Adjudication Board) decisions, arbitration referrals, court proceedings.
Dispute Register: 3 disputes. (1) GFC delay (₹4.5 cr + 60 days) — at Arbitration, 4 hearings done. (2) NCR-led LD imposition (₹2 cr) — at DAB, decision pending. (3) Force majeure due to flood (₹1.5 cr + 30 days) — settled at DAB. Total disputed: ₹8 cr. Arbitration cost to date: ₹1.2 cr.
On large construction contracts (₹100 cr+) — especially infrastructure / EPC / FIDIC contracts — disputes are not exceptional events; they are part of the contract life cycle. Industry data: 15-30% of contract value ends up in formal dispute on a typical Indian infrastructure project.
The Dispute Register is the project's senior-management view of disputes that have escalated beyond claim-rejection — those that have gone to Dispute Adjudication Board (DAB), Conciliation, Arbitration, or Court. It is distinct from the Claim Register (which tracks every claim submitted) — the Dispute Register only tracks the subset that have escalated.
Why a separate register is needed: - Different stakeholders (legal counsel, board, insurance) need this view - Different cadence — DAB / arbitration take months / years; not weekly tracking - Different cost categorisation — legal + arbitrator fees + counsel fees are significant - Different confidentiality — arbitration awards often confidential - Different management chain — directly under MD / CFO / GC, not Project Manager
Under FIDIC Sub-clauses 20.1 to 20.8, the dispute resolution sequence is: Claim → Engineer's determination → DAB → Amicable settlement → Arbitration. Each escalation is a Dispute Register entry.
Stage 1: Claim escalation to dispute: - Original claim reference + amount + date - Engineer's / PMC's determination + date - Notice of dissatisfaction by losing party (FIDIC 20.4 — within 28 days) - Subject matter (EOT / cost / variation / force majeure / quality) - Date escalated to dispute
Stage 2: DAB (Dispute Adjudication Board) — FIDIC Sub-clause 20.2-20.4: - DAB constitution date - Members appointed (typically 3 — one by each party + chair jointly) - DAB fee structure + retainer - Statement of case + response - Hearings held (date + venue) - DAB decision date + summary - Acceptance / Notice of Dissatisfaction within 28 days
Stage 3: Amicable settlement (Sub-clause 20.5): - 56-day cooling-off period - Settlement discussions - Settlement reached (Y/N) + terms if Y
Stage 4: Arbitration (Sub-clause 20.6): - Arbitration agreement reference - Institution (ICA Delhi / MCIA Mumbai / SIAC Singapore / ICC Paris) - Number of arbitrators (1 or 3) - Seat + venue (legal seat governs procedural law; venue is where hearings happen) - Arbitrators appointed (date + names) - Statement of claim + statement of defence + counter-claim - Hearings scheduled + held - Witnesses + experts - Cost so far (arbitrator fees + venue + counsel + expert) - Final award date + summary - Implementation status
Stage 5: Court (if arbitration award challenged under Sec 34 Arb Act): - High Court / District Court - Case number - Counsel + senior counsel - Hearings + interim orders - Final judgment
Settlement / closure: - Final amount paid / received - Date of final settlement - Lessons learned for future contracts
1. No DAB constituted at contract start — FIDIC requires DAB within 28 days of commencement; many projects don't set up DAB until first dispute; loses 3-6 months when needed.
2. Notice of Dissatisfaction missed — FIDIC 20.4 requires NOD within 28 days of DAB decision; missed deadline = decision becomes final + binding.
3. Claim notice missed at root — Sub-clause 20.1 requires notice within 28 days of event; missed; the dispute is dead before it starts.
4. Contemporaneous records weak — daily reports, photos, RFIs missing; can't prove cause / effect / quantum in DAB / arbitration.
5. Arbitration cost underestimated — counsel fees + arbitrator fees + experts + venue + transcription = 10-25% of disputed amount; not budgeted.
6. Wrong seat chosen — Indian seat for international contract opens to Indian court interference; international seat (SIAC / DIFC / LCIA) more arbitration-friendly.
7. Counter-claim missed — defendant focuses on defending; doesn't file own counter-claims; loses opportunity for set-off.
8. DAB skipped to fast-track arbitration — but FIDIC mandates DAB; arbitral tribunal sometimes refuses to hear without DAB; project delayed.
9. Settlement terms not documented — verbal settlement; one party later denies; back to arbitration.
10. Award implementation delayed — winner can't enforce due to Sec 34 challenge; winning party sits on paper award for 2-3 years.
11. Confidentiality breach — arbitration award discussed publicly; commercial impact (rating / future tenders).
12. No fee certainty — arbitrator fees on ad-hoc basis; can balloon to crores in long disputes; should be capped + transparent.
Companion PMC formats: - Claim Register / Log (PMC-RSK-LOG-003) — pre-dispute claims tracking - Risk Register (PMC-RSK-REG-004) — overall project risks - Force Majeure Log (PMC-RSK-LOG-004) — FM events - Variation Order Register — VOs that may become disputes - Daily Progress Report (FMT-SIT-016) — contemporaneous evidence
Legal + contract framework: - FIDIC Red / Yellow / Silver Book 1999 + 2017 — Sub-clauses 20.1 to 20.8 (dispute resolution) - FIDIC Gold Book 2008 — DBO contracts; dispute clauses similar - Arbitration + Conciliation Act 1996 (amended 2015, 2019, 2021) - Indian Contract Act 1872 — Sections relating to performance + breach - Specific Relief Act 1963 — for non-monetary remedies - Commercial Courts Act 2015 — for commercial disputes > ₹3 crore - CPC Order XXIV — settlement procedures - UNCITRAL Model Law on International Commercial Arbitration — basis for Indian Arb Act - NHAI Standard Contract + CPWD Standard Contract — institutional dispute mechanisms