New CIESP/FIESP rules came into force to establish dispute boards during the execution of complex agreements.
The purpose of the dispute boards is to assist the parties in the prevention, management and resolution of disputes arising during the execution of complex agreements, with the issuance of recommendations (not immediately binding) or decisions (immediately binding). Thus, the dispute boards intend to increase the possibility of the parties to maintain the good relationship throughout the execution of long-term projects.
If contractually agreed, the dispute board may be (i) permanent, when it will remain active for the validity of the agreement, or (ii) ad hoc, formed only when a controversy arises, remaining active until the issuance of a recommendation or decision.
To establish the dispute board, the parties need to pay a registration fee when presenting the request to establish the dispute board, a monthly administration fee (due to the CIESP/FIESP Chamber) and monthly fees for the board members (that vary depending on the total amount of the agreement) in accordance to the terms of the CIESP/FIESP Rules. To have access to the complete CIESP/FIESP Dispute Boards Rules, click here (content in Portuguese).
Our team is ready to clarify any doubts, as well as provide legal assistance on the subject.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.