Victoria Mora
senior paralegal - costa rica
With the General Public Procurement Law (LGCP), Article 117 introduced a significant change in the way public works contracts are managed: the incorporation of Expert Committees, internationally known as Dispute Boards. This mechanism makes it possible to anticipate conflicts rather than wait for them to escalate into arbitration or judicial proceedings, thanks to a technical panel that supports the execution of the contract and helps resolve differences in a timely manner. Costa Rica’s experience between 2022 and 2024 shows that this tool is still at an early stage of consolidation, with a clear opportunity to strengthen it.
What Are Expert Committees and What Are They For?
Expert Committees are technical panels that accompany the execution of a public works contract from its outset, with the purpose of detecting and resolving technical or contractual differences as soon as they arise, before they become formal disputes. Their main strength lies in the technical knowledge that their members accumulate about the project as it progresses, which allows them to issue timely assessments tailored to the realities of the contract — something that traditional mechanisms, which tend to intervene once the conflict has already escalated, are unable to offer in the same way. International experience supports their value: in contexts where they have been implemented consistently, Dispute Boards have helped reduce litigation and ensure the continuity of works.
A Mechanism Undergoing Consolidation in Costa Rica
The incorporation of Article 117 marked a turning point in the way Costa Rica addresses conflict management in public works. Like any new tool, its implementation is going through a stage of institutional development in which clear lessons have already been identified (2022-2024):
- The obligation is already consistently reflected in the drafting of contracts, laying a solid foundation for strengthening its operational application.
- The committees that have managed to become fully active, such as those structured under international FIDIC-type models required by multilateral organizations, show that the mechanism works well when clear implementation guidelines exist.
- Defining more clearly the consequences of failing to form or activate the committee would further strengthen its practical application.
- Reorienting its use toward the preventive function for which it was designed, rather than a reactive use, is the next opportunity for improvement.
Opportunities to Strengthen Its Implementation
- Expanding training and guidelines on how to form and operate a committee would strengthen its widespread adoption.
- Positioning committees as technical allies, rather than external monitors, in relation to the contracting authorities may facilitate a more collaborative relationship during the execution of works.
- Giving greater visibility to existing cases and decisions would generate institutional trust and collective learning.
- As practical experience accumulates, it is natural for the contracting authorities to gain greater confidence in these mechanisms compared with traditional avenues.
A Tool with Great Potential
Article 117 represents an important commitment to modernizing the management of public works contracts in Costa Rica. Its implementation is at an early stage, with clear room to strengthen it through greater training, more precise guidelines, and greater transparency in their decisions. With these steps, Expert Committees have the potential to consolidate as a genuine prevention tool, just as has already occurred in contexts where the mechanism has been implemented consistently.
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