Analysis of Dispute Boards in Construction Contracts in Chile (#2719)

Authors

Henriquez, Florencia

Lara, Camila

Torrealba, Ignacio

Araya, Felipe

Abstract

The construction industry is widely recognized as one of the most conflict-ridden due to the technical complexity of projects, the multitude of stakeholders involved, and the contractual relationships that develop during construction. In Chile, the mechanisms traditionally used for resolving disputes in construction contracts are arbitration and litigation. These are reactive mechanisms that intervene once a dispute has already arisen, often resulting in higher costs and lengthy resolution times. Internationally, Dispute Boards (DBs) have emerged as a mechanism aimed at preventing and resolving disputes early during project execution. This study analyzes the operation of Dispute Boards and their current status in the context of construction projects in Chile. A qualitative research approach was used, based on semi-structured interviews with construction professionals experienced in contract management, construction law, and dispute resolution. The data obtained were analyzed using a thematic coding process to identify benefits, barriers to implementation, and key factors for success. The results show a high level of awareness of the mechanism among specialists in the field; however, its practical application in construction projects in Chile remains limited. Key benefits identified include early dispute prevention, improved communication between parties, reduced conflict-related costs, and faster dispute resolution. Nevertheless, significant barriers to implementation are identified, such as a lack of awareness of the mechanism within the industry, cultural resistance to change, and a lack of trust in alternatives to traditional mechanisms.