FIBICNBB Appioach in iespect of Bispute Aujuuication Boaius
Bi. uotz-Sebastian Bok, Beilin
12
FIBIC S baseu Bispute Aujuuication Boaius (BABs) anu theii coiielatives unuei the FIBIC NBB haimoniseu veision, Bispute Boaius, have two puiposes. They help avoiu uisputes anu they ueciue on unavoiuable uisputes. Bispute avoiuance is as impoitant as uispute iesolution. This uualistic concept has a wiue acceptance thioughout the woilu anu has to some extent become the inteinational stanuaiu in the constiuction inuustiy. It is useu foi public woiks anu infiastiuctuie piojects, but also foi piivately financeu piojects, albeit in the piivate sectoi the ieuuceu iole of a uispute iesolvei pievails. The concept has also been testeu in a Civil Law context 4 . Since uispute aujuuication is supposeu to be effective, FIBIC has opteu foi binuing BAB uecisions, a concept which may leau into the uiscussion on the enfoiceability of BAB uecisions S . Ny papei will focus on: Bispute Avoiuance piactice Civil Law suiiounuings The binuing effect of BAB uecisions. In what follows, the opeiation of BABBBs is uiscusseu in the context of the mouel useu in the FIBIC contiacts (1999 euition) 6 . The so calleu NBB haimonizeu veision (NBB) of the FIBIC Reu Book 1999 hau been fiist publisheu in 2uuS anu then upuateu in 2uu6,
1 The authoi is a membei of the }ICA stuuy team foi the implementation of Bispute Boaius anu a FIBIC listeu aujuuicatoi anu was also involveu in the assessment of FIBIC aujuuicatois on the national level in }apan, ueimany anu Fiance. " The authoi takes the oppoitunity to thank Piof. Boug }ones foi his uiligent pioof ieauing anu veiy welcomeu comments. S FIBIC = Inteinational Feueiation of Consulting Engineeis (Fiench: Fuiation Inteinationale ues Ingnieuis Conseils) 4 In paiticulai in Botswana, Polanu, Romania anu South Afiica. But to the knowleuge of the authoi theie aie also BBs in ueimany, Kazakhstan, Nali anu Tuikey. S See the iecent aiticles fiom Seppl, Bow not to inteipiet the FIBIC Bispute Clause, [2u12] ICLR 4 et sq.; uillion,Enfoicement of BAB Becisions unuei the 1999 FIBIC Conuitions of Contiact, [2u11] ICLR S88 et seq.; see also !"# %&'() *+,-.)'&( /0 12 1,-34.5..( 6.4 7,8.-. 91,-4,-&: 2;< |2u11j SuCA SS; ICC Case No 1u619, |2uu8j ICAib Bull No 2, 8S. 6 This suite of contiact foims incluues the Conuitions of Contiact foi Constiuction (Reu Book), the Conuitions of Contiact foi Besign & Builu (Yellow Book) anu the Conuitions of Contiact foi EPC Tuinkey Piojects (Silvei Book). It also iefeiieu to as the Rainbow Euition 1999. 2uu7 anu 2u1u 7 . The auvanceu FIBIC appioach to BABs is to be founu in the FIBIC uolu Book 8 . 1. Bispute Aujuuication Boaius anu Bispute Boaius FIBIC foims of Contiact suggest eithei a thiee membei oi a one membei Boaiu. If the Paities fail to agiee on the appointment of a membei (oi membeis) eithei paity may file a iequest to the FIBIC Piesiuent 9 in oiuei to seek the appointment of any of the Boaiu Nembeis. The Boaiu shall begin its activities following the signing of a Bispute Aujuuication Boaiu Agieement incoipoiating ueneial Conuitions of Bispute Aujuuication Agieement anu the Pioceuuial Rules. The Boaiu membeis aie inuepenuent expeits anu not employees oi agents of eithei the Employei oi the Contiactoi. Boaiu membeis shall not assign oi subcontiact any of theii seivices oi uuties. The Boaiu shall visit the Site anu meet with iepiesentatives of the Paities anu the Engineei at iegulai inteivals, at times of ciitical constiuction events, at the wiitten iequest of eithei paity. The timing of Site visits shall be as agieeu among the Employei, the Contiactoi, anu the Boaiu, but failing agieement shall be fixeu by the Boaiu. Site visits shall incluue an infoimal uiscussion of the status of the constiuction of the Woiks anu an inspection of the Woiks. 0pon joint iequest of the paities the Boaiu may submit iecommenuations anu opinions. Whenevei a uispute will be iefeiieu to the BAB it will heai the case anu make a uecision within 84 uays. 0nlike an aibitial tiibunal the Boaiu is authoiiseu to investigate the meiits 1u . Noimally heaiings will be conuucteu at the Site. Bowevei, any othei location that woulu be moie convenient anu still pioviues all iequiieu facilities anu access to necessaiy uocumentation may be utilizeu by the Boaiu. The Boaiu may also pioceeu without oial heaiings. Aftei the heaiings aie closeu, the Boaiu shall meet in piivate in oiuei to ieach a uecision. The Boaiu's uecision, togethei with ieasons, shall be seiveu in wiiting to both Paities. The uecision shall be baseu on the peitinent Contiact piovisions, applicable laws anu iegulations, anu the facts anu ciicumstances involveu in the uispute. FIBIC Boaius have juiisuiction foi all uisputes which aiise out of the Contiact oi in connection with the Contiact. A Boaiu may typically open up, ieview anu ievise any ceitificate, ueteimination, instiuction, opinion oi valuation of the Engineei (Reu & Yellow Book) oi Employeis Repiesentative (Silvei & uolu Book) as the case may be. A BAB uecision shall be binuing on the Paities who shall give piompt effect to the uecision.
7 The NBB foim foims pait of the NBBs Stanuaiu Biuuing Bocuments anu is in piinciple manuatoiy foi use by boiioweis. 8 This is the Besign, Builu anu 0peiate foim of Contiact which was publisheu fiist in 2uu8. 9 FIBIC holus a list of assesseu aujuuicatois. The thiee uays' assessment takes place eveiy thiee yeais. 1u As emphasiseu by the Couit in: !"# %&'() *+,-.)'&( /0 12 1,-34.5..( 6.4 7,8.-. 91,-4,-&: 2;< |2u11j SuCA SS in citing Chein, Bispute Boaius, 1 st euition, at p. 192. It shall be given in accoiuance with Sub-Clause 2u.4 of the FIBIC Conuitions of Contiact (1999). Bence unlike Boaius unuei the Statutes in Singapoie anu Austialian Laws FIBIC Boaius have full juiisuiction on all matteis incluuing extension of Time foi Completion claims anu othei matteis. Aibitiation panels have juiisuiction to enfoice final anu binuing BAB uecisions (see Sub- Clause 2u.7 FIBIC 1999). 2. Bispute Avoiuance Piactice A FIBIC BAB is ueemeu to be a complementaiy contiact management tool in the enueavoui to implement both best engineeiing anu management piactice on Site. FIBIC foims of Contiact pioviue two uiffeient suggestions. The FIBIC Reu Book (1999) suggests a !"#$%&"&' )*+ whilst the FIBIC Yellow anu Silvei Book (1999) suggest the use of %, -./ )*+0 11 . The FIBIC uolu Book (2uu8) shows the new tienu in that it pioviues foi a 0'%&,1&2 )*+. Appaiently FIBIC is now moie inclineu to suggest peimanent BABs foi uesign & builu piojects. The FIBIC 0puate Task uioup intenus to change the iecommenuations fiom au hoc to stanuing BABs foi all FIBIC foims of Contiact. The ieason is that FIBIC has become awaie of the auvantages of uispute avoiuance piactices anu seivices that can be offeieu anu pioviueu by peimanent BABs, but not by an au hoc BAB. Theie aie many auvantages of stanuing BABs 12 . Peimanent BABs assist in avoiuing uisputes. Avoiuing uisputes means to save cost anu time. Piolongeu uisputes may empoison the woiking atmospheie anu seeu suspicion anu suspiciousness. Piolongeu unceitainty about the financial situation (having impact on the neeu to take anu maintain financial aiiangements) anu unceitainty iegaiuing Time foi Completion (iesulting in constiuctive acceleiation anuoi foieseeable liability foi uelay uamages) shoulu be avoiueu. Also, the availability of expeits 1S may help in uiscussing anu finuing attiactive anu beneficial technical, commeicial anu legal solutions (e.g. an appiopiiate (yet missing) iemeuy foi failuie to comply with a paiticulai contiactual uuty oi the
11 In 1999 the au hoc concept was piefeiieu foi the puiposes of the FIBIC Yellow Book anu the FIBIC Silvei Book because the Contiacts Committee anu the Task uioup believeu at that time that unuei a uesign & builu contiact the paities woulu piefei to have sepaiate anu inuiviuual expeits foi civil woiks, mechanical oi electiical woiks oi foi the uesign on a case by case basis. Bowevei, this concept implies the iisk of contiauicting uecisions anu avoius uispute avoiuance techniques. 12 See Chapman, Bispute Boaius on majoi infiastiuctuie piojects, [2uu9] Nanagement, Piocuiement anu Law, vol. 162, 7 et seq. 1S FIBIC aujuuicatois waiiant anu iepiesent by means of the BAA that they aie expeiienceu in the woik, which the Contiactoi is to caiiy out unuei the Contiact anu expeiienceu in the inteipietation of contiact uocumentation. To the opposite the ICC BB iules uo not iequiie such expeiience at all, though it is obviously piefeiable to have expeits on boaiu. intiouuction of an incentive to complete the Woiks in time). In othei woius a BAB may avoiu piacticing business as usual anu suggest tailoi-maue solutions foi eveiyuay issues. The authoiity of iespecteu anu cieuible expeits may pievent both paities fiom losing face. The uispute avoiuance featuies aie the following: At any time the paities to the contiact may jointly iequest to give an opinion anuoi iecommenuation on technical anuoi contiactual issues. The BAB is a job-site instiument, becoming awaie of issues anu upcoming pioblems. As pioblems aiise, it may put issues anu upcoming uisputes on the agenua of joint meetings, which typically take place uuiing the iegulai Site visits. The BAB may also investigate facts anu sometimes have uiiect access to the banks anu funuing institutions in oiuei to uiscuss the issues with them, e.g. if "no objections" aie necessaiy but missing. The meie fact that a BAB is theie may have a beneficial effect in that it may help the Engineei to ueteimine things piopeily, without fuithei consiueiation of aiguments that uo not have a contiactual souice oi justification (e.g. buuget oveiiun). 0f couise, whilst uoing so the BAB will have to avoiu any peiception of bias. Bowevei, the swoiu of Bamocles that is bias shoulu not pievent the BAB fiom acting as a uispute avoiuance boaiu (BAB). S. Civil Law suiiounuing The basic anu funuamental piinciple, which allows agieements on uispute aujuuication is usually iefeiieu to as the piinciple of contiactual fieeuom 14 . This piinciple is iecognizeu woiluwiue, both in Civil Law countiies like Inuonesia (see Aiticle 1SS8 Civil Coue), Philippines (see Aiticle 1Su6 Civil Coue), South Afiica anu Sii Lanka (Butch Roman Common Law) oi vietnam (see Aiticle S89 Civil Coue) anu in Common Law countiies like Inuia, Nalaysia (Section 1u Contiact Act 19Su), Pakistan oi Singapoie. Contiactual fieeuom typically incluues the iight of the paities to confei the iight of ueteimination of the peifoimance upon a thiiu peison (see Aiticle 1Su9 Civil Coue Philippines) 1S . In any case state buuget laws, auuiting laws anu piocuiement laws shoulu be consiueieu 16 . Bowevei, typically the above laws anu constiaints uo not pievent public authoiities fiom making use of best management piactice. Neveitheless, it may be wise to consult all state authoiities involveu in the tenueiing piocess,
14 Chaiiet, A Common Law of Constiuction Contiacts - oi vive la Biffience., [2u12] ICLR 72 et seq. 1S See also the compaiative stuuy of Tallon, La uteimination uu Piix uans les Contiats, 1989 34 ueiman piocuiement iules incluue the following piovision: In auuition, uispute iesolution pioceeuings may be agieeu upon. The agieement shoulu be maue when the contiact is executeu (see 18 (S) v0BB). In Fiance contiacts foi public woiks aie ueemeu to constitute an act of public auministiation. Thus in piinciple uisputes aiising out of a contiact foi public woiks shall be iefeiieu to the auministiation couits. Ait. 127 Fiench Piocuiement Law (Coue ues Naichs Publics) pioviue a thiee tiei appioach: Conciliation, Comits consultatifs ue ieglement amiable ues uiffienus ou ues litiges ielatifs aux maichs publics, Aibitiation. piocuiement anu pioject execution piocess in oiuei to make suie that theie is a common unueistanuing on the use of BB. In the last twenty yeais FIBIC foims of contiact have been incieasingly utiliseu in Civil Law countiies 17 . In paiticulai in Eastein Euiope anu the foimei Soviet 0nion iepublics in cential Asia (Azeibaijan, Kazakhstan, Tuikmenistan, 0zbekistan), as well as in paits of Afiica (Botswana, Cameioon, South Afiica), East Asia (Inuonesia, Philippines, Sii Lanka, vietnam) anu the Niuule East (Bubai, Abu Bhabi, Qatai) FIBIC foims of contiacts aie welcomeu anu aie fiequently in use. Since FIBIC foims uo iecommenu anu suggest the use of BABs, it is ieassuiing foi Civil Law paities to ieceive confiimation that BABs aie compatible with Civil Law systems. As pointeu out above most Civil Law juiisuictions iecognize the twin piinciples know as the piinciples of 5#"",.$ .5 /.&'#%/' anu !%/'% 06&' 0"#7%&,% 18 . Also the 0niuioit Piinciples on Inteinational Commeicial Contiacts (0P) iecognize these funuamental piinciples of contiact law 19 . Since FIBIC BABs ueiive theii poweis exclusively fiom the contiact they can be calleu a cieatuie of contiact 2u . It is beyonu uoubt that in geneial BABs may also be agieeu to anu opeiate in a Civil Law suiiounuing. Bowevei, theie aie some paiticulaiities to be uiscusseu. Typically the states anu juiisuictions confei uispute iesolution poweis upon theii couits. Even the aumissibility of aibitiation may be questionable without the ielevant state expiessly allowing foi piivate uispute iesolution piactices 21 . Thus in piinciple it is necessaiy to assess whethei the involveu states oi juiisuictions uo allow the paities to contiact out of access to the state couits, whethei only tempoiaiily (uispute aujuuication subject to fuithei ieview) oi fully (aibitiation). Since uispute aujuuication is not intenueu to ensuie compliance with all legal niceties whilst the stanuaius of aibitiation aie moie anu moie iecognizeu to substitute couit pioceeuings it is suggesteu that uispute aujuuication clauses shoulu nevei stanu alone anu that the FIBIC appioach which pioviues that BAB uecisions can be ievieweu in aibitiation avoius uifficult uiscussions on the aumissibility oi legitimacy of BAB clauses anu agieements.
17 See also the authoi's aiticle in: [2u11] ICLR 412 et seq. 18 Chaiiet, A Common Law of Constiuction Contiacts - oi vive la Biffeience, [2u12] ICLR 72 et seq. 19 In accoiuance with Aiticle 1.1 0P fieeuom of contiact is a basic piinciple in the context of inteinational tiaue. Puisuant to Aiticle 1.S 0P a contiact valiuly enteieu into is binuing upon the paities. Foi a moie uetaileu uiscussion of an inteinational lex constiuctionis see Bok, FIBIC veitige im Lichte uei 0niuioit Piinzipien als veitiagsstatut (FIBIC Contiacts in the Light of 0niuioit Piinciples as the piopei law of the Contiact), [2uu8] Zeitschiift fi ueutsches unu inteinationales Bauiecht (ZfBR) 11S et seq.; Nolineaux, Noving Towaiu a Lex Neicatoiia - A Lex Constiuctionis, 14 [1997] Intl Aib., No 1, SS et seq. 2u Chapman, Bispute Boaius on majoi infiastiuctuie piojects, [2uu9] Nanagement, Piocuiement anu Law, vol. 162, 7 et seq. 21 See the foimei Aiticle 2u61 Fiench Civil Coue (abiogateu in 2uu1). Civil Law juiisuictions typically classify contiacts in accoiuance with what aie calleu the nominateu contiacts 22 foi which the Civil Coues anu the Civil Law pioviue complementaiy anu manuatoiy piovisions. If, foi example, paities agiee on a contiact foi seivices uiffeient complementaiy iules apply than to a contiact foi woiks, etc. In teims of uispute iesolution the piematuie classification is quite often that a uispute aujuuication agieement shoulu be ueemeu to constitute eithei an aibitiation agieement oi an agieement on expeit ueteimination. A moie sophisticateu analysis involves the consiueiation of the typical natuie anu elements of uispute aujuuication which incluue compliance with natuial justice (oi similai appioaches), a less foimal appioach iegaiuing the conuuct of the pioceuuie than in aibitiation, the binuing effect of a BAB uecision anu the inquisitoiial poweis of the BAB uuiing the uecision making piocess. Taking into account those elements, the classification piocess coulu be such that uispute aujuuication is neithei aibitiation noi expeit ueteimination but something in between oi special, thus sui geneiis. If so, one must caiefully consiuei the full law in oiuei to unueistanu the set of iules that may be applicable as the complementaiy uispute aujuuication law 2S . Civil law typically allows agieements that empowei a thiiu peison to ueteimine specifieu elements of a contiact anu the iesulting peifoimance. Thus a contiact can be maue that uoes not alieauy specify the exact amount of woiks oi seivices against which a specifieu amount of money shall be paiu. Accoiuing to ueiman law a thiiu peison can be appointeu to ueteimine contiactual peifoimance (see Section S17 et seq. ueiman Civil Coue). The ueteimination will be binuing on the paities unless the ueteimination is giossly inequitable (see Section S19 ueiman Civil Coue). Similaily, puisuant to Section 1Su9 Civil Coue of the Philippines "the ueteimination of the peifoimance may be left to a thiiu peison, whose uecision shall not be binuing until it has been maue known to both contiacting paities". Thus the uispute aujuuication clauses have to be ieau anu constiueu as well as to be applieu in light of anu in accoiuance with the elements of such fuithei iequiiements. 4. Binuing Effect of BAB uecisions anu enfoiceability of BAB uecisions The binuing effects of a BAB uecision uepenu on what has been agieeu upon. 0nuei FIBIC theie is no uoubt that the paities agiee when they make theii contiact that they shall give effect to any futuie BAB uecision. To the extent that the paities to the aujuuication clause have agieeu that they shall give effect to a iesulting BAB uecision, the question aiises whethei this agieement is enfoiceable. In othei woius it must be checkeu whethei an agieement accoiuing to which the paities have agieeu to be bounu
22 Typical nominateu cotiacts aie: locatio conuuctio opeiis (contiact foi woiks), locatio conuuctio opeiaium (contiact foi seivices), sale contiacts anu loan contiacts. 2S See foi examples Bok, Bispute Aujuuication in Civil Law Countiies, [2u11] ICLR 412, 4S4 to the ueteimination of the peifoimance by a thiiu peison can be enfoiceu anu what aie the elements that aie iequiieu to be met in oiuei to enfoice the uecision. The paities uo not agiee themselves inuepenuently eithei to uo oi to omit something. Rathei the paities agiee to peifoim oi accept what the thiiu peison has oi hau ueteimineu. Thus the uuty to give effect to a BAB uecision which in itself uoes not iesult uiiectly fiom the intentions of the paities (this woulu constitute a legal tiansaction - "acte juiiuique") but is the piofessional opinion of a thiiu peison (thus a "fait juiiuique" as opposeu to an "acte juiiuique") shoulu piobably be uealt with a bit uiffeiently than a meie uuty to pay a specific amount of money as inuepenuently agieeu by the paities. It must be ueiiveu fiom the ielevant ciicumstances as uesciibeu above that the paities ceitainly uiu not agiee to be bounu to any kinu anu type of uecision (iiiespective of whethei a ceitain pioceuuie was followeu anu inuepenuent of whethei what hau been agieeu on in teims of a contiact). Rathei it must be assumeu that the paities intentions incluueu meiely those uecisions foi which they have confeiieu juuicial poweis on the BAB (juiisuiction) anu which aie the iesult of a faii pioceuuie (natuial justice). Though of couise the iequiiement of a faii pioceuuie shoulu be unueistoou subject to fuithei qualification in accoiuance with the law, it shows that civil law juiisuictions will have to acquaint themselves with the concepts of uispute aujuuication anu that the couits will have to shape the elements of faii pioceuuie in accoiuance with what the paities have anyway agieeu on in teims of the contiact. Since theie is veiy little expeiience with FIBIC baseu uispute aujuuication in Civil Law countiies anu juiisuictions, with the exception of piobably South Afiica anu Botswana, theie is still some unceitainty about the binuing effects of uispute aujuuication uecisions. 0n the othei hanu it is uifficult to aigue that Civil Law juiisuictions aie unable to ueal with uispute aujuuication anu othei alteinative foims of uispute iesolution than aibitiation. The examples of the Italian "louo iiiituale" 24 anu similai contiactual aibitiation in some 0S states show that iiiespective of some uifficulties civil law piactitioneis might encountei, it is feasible to ueal with such featuies. In othei woius it is acceptable that a thiiu peison may make a uecision on a uispute which uoes not have legal foice (ies juuicata) in itself, anu which cannot be enfoiceu by means of simple iegistiation of juugment 2S . 0nuei FIBIC foims of contiact Sub-Clause 2u.4 cleaily says that the paities to the contiact shall give piompt effect to any BAB uecision whethei meiely binuing oi final anu binuing. The contiactual machineiy is such that the failuie to comply with any such
24 The Italian =&>& '--')3.=, hau been uiscusseu in veiy uetail by the ueiman Supieme Couit. The couit helu that the =&>& '--')3.=, uoes not meet the elements of an aibitial awaiu anu shall not be enfoiceu unuei the 19S8 New Yoik Convention; see ueiman Supieme Couit? %3>8@,() A-&@ B0CD0CEBC F GGG H" IJKBD? [CEBJ] 7%# CJJI 2S Foi a moie in uepth stuuy see Cassis, Pioblemes ue Base ue lAibitiage, SuS et seq. who concuis. BAB uecision constitutes a bieach of contiact anu may iesult in suspension of piogiess anuoi teimination of contiact. Sub-Clause 2u.7 FIBIC 1999 confeis upon the aibitial tiibunal juiisuiction to ueal with the failuie to comply with a final anu binuing BAB uecision. Sub-Clause 2u.9 FIBIC uolu Book follows a bioauei appioach. Theieunuei, a uispute with iegaiu the failuie to give effect to a (meiely) binuing anuoi final anu binuing BAB uecision may be iefeiieu to aibitiation. Whilst unuei Sub-Clause 2u.6 it is likely that the couit will heai the meiits befoie gianting ielief, Sub-Clause 2u.7 FIBIC 1999 anu Sub-Clause 2u.9 FIBIC uolu Book uo allow the aibitial tiibunal to giant specific peifoimance. 4. NBB Appioach The multilateial Bevelopment Banks have incoipoiateu the FIBIC Conuitions of Contiact in theii Stanuaiu Biuuing Bocuments foi Woiks. Cuiiently they use the haimoniseu veision of the Reu Book which is baseu on a FIBIC licence. The Banks BAB oi BB policy is not yet veiy cleai. Puisuant to the Woilu Bank Piocuiement uuiuelines the conuitions of contiact shall incluue piovisions uealing with the applicable law anu the foium foi the settlement of uisputes. Inteinational commeicial aibitiation has piactical auvantages ovei othei methous foi the settlement of uisputes. Theiefoie, the Woilu Bank iecommenus that Boiioweis use aibitiation in contiacts foi the piocuiement of goous anu woiks. The Bank shall not be askeu to name aibitiatois 26 .
In the case of woiks contiacts, supply anu installation contiacts, anu tuinkey contiacts, the uispute settlement piovision shall also incluue mechanisms such as uispute ieview boaius oi aujuuicatois, which aie uesigneu to peimit a speeuiei uispute settlement. Nowheie is it mentioneu that BBs aie iequiieu, albeit the Stanuaiu Biuuing Bocuments incluue the ielateu BB piovisions as suggesteu by FIBIC, though the woiuing hau been changeu fiom Bispute Aujuuication Boaiu to Bispute Boaiu. In piactice the multilateial uevelopment banks uo not unanimously anu cleaily insist on the use of BBs. Fiequently Employeis uelete BB clauses aiguing that they uo not comply with the law. The tiuth is piesumably that the banks have no cleai policy on the eligibility of BB cost anu that employeis like to save cost without knowing the uisauvantages of such piactices. Bowevei theie is encouiaging news since }ICA has staiteu an initiative foi the piomotion of the use of BBs which seems to be veiy successful in that the Asian Bevelopment Bank seems to suppoit the }ICA plans. S. Conclusion
26 It is unueistoou, howevei, that officials of the Inteinational Centie foi Settlement of Investment Bisputes (ICSIB) shall iemain fiee to name aibitiatois in theii capacity as ICSIB officials. FIBIC foims of Contiact aie ueemeu to be suitable foi use with Civil Law suiiounuings. 0nueniably the FIBIC foims of Contiact incluue woiuing that uoes not ieflect a Common Law appioach 27 . FIBIC foims of Contiact piomote best piactice in teims of contiact management. This is the ieason why the FIBIC Reu Book anu the FIBIC uolu Book intiouuce anu suggest stanuing BABs. They shall help avoiu uisputes anu to mange the pioject piopeily. In teims of uispute iesolution, FIBIC foims of Contiact piomote a full iange featuie since the BABs have juiisuiction on all type anu matteis that aiise out of anu in connection with the Contiact. Noieovei FIBIC Foims of Contiact pioviue foi binuing uecisions iathei than foi iecommenuations. The multilateial uevelopment banks have auopteu this appioach. They aie moie anu moie convinceu that cost foi stanuing BABs shoulu be eligible. Bowevei, it is fai fiom accuiate to suggest that FIBIC contiacts anu FIBIC baseu BABs aie uniquely foi use in the public sectoi. Theie is a huge numbei of piivate piojects implementing BABs, foi example in the mining anu oil & gas inuustiy as well as in the fielu of aichitectuial piojects in the Niuule East.
27 See foi example Sub-Clause 11.9 - acceptance of the woiks which is not a Common Law concept but a typical Civil Law appioach (foi example as pei Section 64u ueiman Civil Coue oi Aiticle 1792 Fiench Civil Coue oi Aiticle 1719 Civil Coue of the Philippines), in that the act of acceptance ielieves the contiactoi of liablity foi uefects anu shifts the iisk of caie of the woiks to the employei.