final, where a notice of dissatisfaction is given within the contractually stipulated timeframe. If a party fails to comply with a DAB decision, the counter-party may apply for a final award to enforce the DAB decision, or request an interim award from an arbitral panel requesting that the decision be enforced, separately from its request for a final award on the merits of that DAB decision. Under section 19B of the IAA, that interim award (such as the Interim Award in Perusahaan) would be final and binding in respect of its declaration that the recalcitrant party comply with the DAB decision. Although a party may challenge the merits of the DAB decision in the same arbitration, the interim award stands as a final and binding arbitral award. The decision therefore reinforces the “pay now, argue later” principle that is crucial to the success of DABs under the FIDIC suite of contracts in resolving disputes and ensuring the security of payment on large international projects. Eugene Tan Partner, Singapore T: +65 6544 6583 E: eugene.tan@clydeco.com
Rupert Coldwell Associate, London T: +44 20 7876 4429 E: rupert.coldwell @clydeco.com This article was first published in Partnerships Bulletin.
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