Dispute Review Board: Neutral Experts for Dispute Avoidance

PMBOK v8 Definition

A dispute review board is a panel of neutral experts appointed at the start of a project to provide ongoing dispute avoidance and resolution. It is one of the alternative dispute resolution (ADR) methods used to resolve disagreements between parties without resorting to litigation. The board is established early in the project lifecycle and remains available throughout the project to address disputes as they arise.

Why It Matters for the Exam

This concept appears frequently in PMI exam questions related to claims administration and stakeholder management. Expect scenario-based questions where you must identify the appropriate ADR method for a given situation, or distinguish between dispute review boards and other resolution techniques like mediation or arbitration.

Key Points to Remember (for the exam)

• Definition: A panel of neutral experts appointed at the start of a project
• Primary Purpose: Provides ongoing dispute avoidance and resolution throughout the project
• Key Differentiator: Unlike mediation or arbitration (which are reactive), dispute review boards are proactive—established before disputes occur
• Member Qualification: Experts are neutral and typically have technical or industry-specific knowledge
• Process Type: Classified under Alternative Dispute Resolution (ADR) methods
• Relationship to Claims: Project managers must understand contract terms to identify potential dispute areas and manage risks proactively
• Last Resort: If all ADR methods fail, litigation becomes the final option (dispute referred to court)

Typical PMI Exam Example

A large infrastructure project experiences recurring disagreements between the owner and contractor regarding change order interpretations. The project team wants to resolve these issues quickly without court involvement. Which ADR method is most appropriate if the parties need ongoing, expert guidance throughout the project?

Answer: Dispute review board (panel of neutral experts appointed at project start for ongoing dispute avoidance and resolution)

PMI Exam Traps

• Trap: Confusing dispute review boards with mediation

• Reality: Mediation brings in a neutral third party only when a dispute arises; dispute review boards are appointed at project start and provide ongoing guidance

• Trap: Thinking arbitration is always the first ADR option

• Reality: ADR methods follow a progression: negotiation → mediation → dispute review board → arbitration → expert determination → litigation

• Trap: Assuming dispute review boards make binding decisions like arbitration

• Reality: Dispute review boards focus on avoidance and resolution; arbitration results in a binding decision from an arbitrator or panel

• Trap: Believing all ADR methods are informal

• Reality: Arbitration is a more formal process where an arbitrator or panel hears both sides and makes a binding decision

Important PMI Connections

Quick Review Questions

1. What is the key difference between a dispute review board and mediation regarding timing of involvement?

2. A project has a technical disagreement about concrete specifications. Which ADR method appoints an independent expert specifically for this technical issue?

3. When all alternative dispute resolution methods have been exhausted, what becomes the final option?

4. What qualification must members of a dispute review board possess?

5. In the ADR progression, where does "expert determination" fall relative to arbitration?

PMBOK v8 Reference

Section X4.9 - Alternative Dispute Resolution (ADR) Methods (Claims Administration and Dispute Resolution)