The sentence I hear most often in large projects is this: "We'll deal with it if something goes wrong."
That approach is understandable. But it is costly.
Working with parties across different sectors over the years, the most critical difference I have observed is between those who resolve disputes and those who never allow them to form. The second group tends to use a different tool: DAAB.
Prevention Is More Valuable Than Resolution
DAAB stands for Dispute Avoidance and Adjudication Board. It sits at the centre of FIDIC 2017, which has become the standard for international construction contracts. It is established when the project begins, remains active throughout, and intervenes before a dispute ever materialises.
This is a proactive approach, not a reactive one.
The difference is significant. Once a dispute reaches arbitration, you are no longer risking only money. You are risking time, the relationship, and your reputation.
Why Is It Still Unknown in Turkey?
It is well documented that Turkish parties remove DAAB clauses from their contracts. The reason given is almost always cost.
But that calculation is incomplete.
The cost of setting up a DAAB is modest when compared to the legal fees of an arbitration proceeding, the cost of project delays, and the sometimes irreversible damage to a business relationship. International data shows that a well-functioning DAAB can reduce dispute costs by up to eighty percent.
The problem is a lack of awareness. And that lack of awareness is expensive.
An Obligation That Is Approaching
In projects financed by multilateral development banks such as the World Bank, EBRD, and IFC, DAAB is increasingly becoming a requirement. The number of infrastructure projects in Turkey subject to this type of financing is growing.
This is no longer a matter of preference.
In December 2024, FIDIC published a new practice note that further strengthened the dispute avoidance role of the DAAB. The Board is now defined not merely as a decision-making body, but as a trusted, project-aware structure that functions like an early warning system.
Thinking Alongside Mediation
DAAB does not replace mediation. They serve different stages and different needs.
But considered together, they form a strong architecture for large projects: DAAB moves with the project, mediation protects the relationship, and arbitration remains as a last resort.
This layered approach is becoming the standard prescription for international projects.
Turkey's integration into this architecture matters. For the sector's international competitiveness and for the success of the projects themselves.
Investing in the right tools before a dispute arises is not only cost management. It is relationship management.
And good relationships build good projects.