FIDIC / Legal Reference: FIDIC Red Book Clause 20.5
A 56-day period following a DAB decision — during which either party has issued a notice of dissatisfaction — in which the parties are required to attempt to settle the dispute amicably before commencing arbitration.
What it means in practice
Under Clause 20.5, neither party may commence arbitration until the earlier of: 56 days after the notice of dissatisfaction, or the failure of the parties to settle amicably. The amicable settlement period is a precondition to arbitration, not a mere formality.
The 2017 edition broadly preserves the amicable settlement period but clarifies that the parties are free to agree to different timescales and dispute resolution processes, including mediation.
Where disputes arise
Jurisdictional challenges based on failure to observe the amicable settlement period do arise in practice, though tribunals are generally reluctant to dismiss claims on purely procedural grounds where the parties have otherwise engaged substantively.
UAE Context
In UAE construction disputes, the amicable settlement period is sometimes used productively — particularly where the parties have an ongoing commercial relationship and genuinely wish to settle.
Related terms
e-Basel supports parties through the dispute resolution process from DAB through amicable settlement to arbitration, across UAE and international construction projects.
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