The Danish Building and Construction Arbitration Board is a private enterprise. All expenses of the Board related to case handling, including those of staff, facilities and rent, are recovered by the fees and charges of cases and through returns on lodged deposits.
Fees and charges are dependent upon the type of case. Further information can be found under the different subheadings on costs and cases.
In addition to the regular fees and charges, the parties in arbitration cases will also defray the expenses related to the arbitration tribunal and meeting room facilities as well as possible travel expenses, translations, etc. In cases of expert assessment or expert decision may be added payment of expenses related to special investigations or an additional expert, besides the fee to the regular expert.
At the outset of a case the Arbitration Board will determine the amount of security to be lodged relative to the cost of the arbitration case, i.e. a deposit. The deposit will be increased if this proves necessary. In arbitration, as well as conciliation and mediation cases, deposit amounts are divided between the parties involved. Upon conclusion of a case, the Board will settle the case and any excess deposit amounts lodged with the Board will be returned.
The Arbitration Board has been set up upon the request of organizations in the building and construction area to assist in matters of disputes within the field. The Board has no stock holders, or similarly vested interests, who can profit from a positive yield of interests – the Board is therefore run as a non-profit organization maintaining a balance between income and expenses.
The accounts of the Arbitration Board are not publically available, but the Board has a solid financial foundation and maintains a professional handling of finances and security deposits.
The reason for the new system of fees and charges
The 2015 adjustment of the Board’s system of fees and charges were due to an imbalance over the recent years between the actual work executed by the Board and the income generated by the administrative case handling.
In relation to arbitration cases, the Board used to receive only a very small fee in settlement cases, since the fee was contingent upon the fee for the arbitral tribunal. In practice, this meant that the Board only received DKK 7,000 in a large number of cases involving extensive case handling.
Because of the general financial situation, the Board has, furthermore, seen a substantial decrease in revenue from security deposits over the recent years, which used to enable smaller fees and charges. Conversely, this now means less costly financing of deposits for the clients with the Board. The new structure for service charges also makes it easy to downwardly adjust the charge in accordance with any changes of this situation.
As of 1 January 2015, cancellation of meetings held at the Arbitration Board must be announced at least thirty days prior to the meeting. For other meeting facilities, e.g. at a hotel, cancellation is subject to the rules of that particular venue.
A few additional adjustments have been made after 1 January 2016 – these have been incorporated under the subheadings for the different types of cases.