Construction disputes – adjudication under Polish

A German infrastructure fund signs a contract for a major road project in Mazowieckie. Six months in, the general contractor submits a claim for prolongation costs. The employer disputes it. Under the contract, a Dispute Adjudication Board (DAB) must issue a decision within 84 days. Neither party has appointed the board. The clock is already running.

Construction disputes under FIDIC contracts in Poland are governed by a combination of the FIDIC conditions and Polish civil law, primarily the Kodeks cywilny (Civil Code, KC) and the Prawo budowlane (Construction Law Act, PBA). The adjudication mechanism under FIDIC requires a DAB decision before any dispute may proceed to arbitration, making early board constitution a contractual obligation with direct consequences for cost recovery. Failure to follow the multi-tier dispute resolution ladder can forfeit a party's right to pursue a claim entirely.

This page explains how FIDIC adjudication works within the Polish legal framework, what instruments are available at each stage, and where foreign investors and domestic contractors typically lose ground. It also covers the checklist of steps to take when a dispute first surfaces on a Polish construction site.

How does FIDIC adjudication fit within the Polish legal framework?

FIDIC adjudication sits at the intersection of contract law and procedural law. Under Polish civil legislation, the parties are free to agree on contractual dispute resolution mechanisms, and FIDIC conditions have that status. The DAB is not a court. Its decisions are binding but not final – they can be challenged by a Notice of Dissatisfaction (NOD) within 28 days. If neither party issues a NOD, the decision becomes final and binding.

Polish courts – including the Sąd Okręgowy (Regional Court) and, on appeal, the Sąd Apelacyjny (Court of Appeal) – have confirmed that FIDIC DAB decisions are enforceable as contractual obligations. A party that fails to comply with a binding DAB decision can be sued for breach of contract. The National Court Register (KRS) records the contracting entities, and the Public Procurement Office (PPO) oversees public contracts, many of which incorporate FIDIC Red and Yellow Book conditions.

The General Directorate for National Roads and Motorways (GDDKiA) uses a modified FIDIC Red Book as its standard form for road and bridge contracts. These modifications frequently alter the 28-day and 84-day time limits. Reading the particular conditions carefully – before any dispute arises – is not optional. We secured a reversal of a prolongation cost disallowance exceeding PLN 3.5m for a construction client in the Mazowieckie region (autumn 2025).

FIDIC Red Book – construction by contractor, employer-designed
FIDIC Yellow Book – design-and-build, contractor-designed
FIDIC Silver Book – EPC/turnkey, contractor bears full risk
FIDIC Gold Book – design, build, operate
GDDKiA Particular Conditions – modify standard FIDIC for Polish public contracts

One point foreign investors often miss: Polish public procurement law imposes mandatory provisions that override contractual terms. If a FIDIC clause conflicts with the Prawo zamówień publicznych (Public Procurement Law, PZP), the statutory provision prevails. This matters for payment timelines, retention release, and the scope of permissible contract modifications.

What are the key instruments in a FIDIC dispute under Polish law?

The FIDIC dispute ladder has three main rungs: Engineer's determination, DAB decision, and ICC arbitration (or domestic arbitration if the parties have so agreed). Each rung has a specific time limit. Missing one does not merely delay the process – it can extinguish the claim. Under FIDIC Sub-Clause 20.1, a contractor must submit a notice of claim within 28 days of becoming aware of the event. Late notice is a complete bar to recovery in most interpretations applied by Polish arbitral tribunals.

The Engineer's role under Polish FIDIC contracts is often misunderstood. The Engineer acts for the employer but must make fair determinations. In practice, Engineer's determinations on public contracts in Poland are issued within 42 days of the claim submission. If the Engineer fails to respond, the claim is deemed rejected. That deemed rejection triggers the right to refer the matter to the DAB.

Our team obtained interim protection of assets worth over EUR 4m for a Belgian investor's subsidiary in Lower Silesia (spring 2026), after the employer refused to comply with a DAB decision pending arbitration. The key instrument there was an application to the Sąd Okręgowy for a zabezpieczenie roszczenia (interim injunction) under Polish civil procedure. Polish courts can grant such relief within 7 days in urgent cases.

28-day notice of claim – mandatory under Sub-Clause 20.1
42-day Engineer's determination window
84-day DAB decision period from referral
28-day NOD window after DAB decision
Interim injunction – available from Polish Regional Court within 7 days

For parties considering cross-border real estate and construction structures, the choice of arbitration seat matters. ICC arbitration seated in Paris or Warsaw produces an award enforceable under the New York Convention in over 170 states. Domestic arbitration before the Court of Arbitration at the Polish Chamber of Commerce (SAKiG) is faster and cheaper, but recognition abroad requires additional steps.

To receive an expert assessment of your FIDIC claim position, contact info@kordeckipartners.com. Each construction dispute has a different risk profile – a brief review of the contract and the claim timeline is the fastest way to identify exposure before it becomes irreversible.

Specific situations require tailored analysis. If your contract contains GDDKiA particular conditions and you are approaching a 28-day notice deadline, the consequences of inaction are permanent. Reach out to info@kordeckipartners.com for an immediate review.

What are the most common pitfalls in Polish FIDIC adjudication?

The single most common failure is missing the 28-day notice window. Polish arbitral practice treats this deadline as strict. Courts applying FIDIC under Polish law have declined to extend it even where the contractor was unaware of the full extent of the loss. Awareness of the event – not full quantification – starts the clock. This distinction costs contractors significant sums each year.

A second pitfall is failing to constitute the DAB before a dispute arises. FIDIC recommends appointing the DAB at the outset of the project, not when a dispute has already crystallised. On contracts longer than 12 months, a standing DAB is standard. Many Polish public contracts omit this step, leaving parties scrambling to agree on a DAB member when relations have already broken down.

Third: treating the Engineer's determination as a formality. If the Engineer issues a determination that is unfavourable, the contractor has 28 days to refer the matter to the DAB. Missing that referral deadline can mean the Engineer's determination stands as the final resolution of the dispute – even if it is factually wrong.

Fourth: confusing the role of the DAB with that of an expert witness. DAB members under FIDIC are not appointed to provide opinions. They visit the site, review documents, hold hearings, and issue binding decisions. Their fees – typically EUR 300 to EUR 600 per day per member – are shared equally unless the DAB orders otherwise. Budgeting for these costs from contract inception avoids later disputes about who pays.

Fifth: ignoring the pay-now-argue-later principle. A final and binding DAB decision must be honoured immediately. Refusing to pay pending arbitration is a breach of contract under Polish civil law and exposes the refusing party to interest charges and enforcement proceedings before the Regional Court. The interest rate under Polish civil legislation currently stands at 11.25% per annum for commercial obligations.

How should foreign investors approach construction disputes in Poland?

Foreign investors entering Poland – whether from Germany, France, the Netherlands, or further afield – face a specific challenge. FIDIC is internationally familiar, but the Polish statutory overlay is not. The PBA imposes obligations on the investor as the building permit holder. If the project is delayed and the investor triggers a penalty clause, the contractor's FIDIC claim and the investor's contractual penalty may run simultaneously. Managing both requires coordination from day one.

Public procurement contracts in Poland cannot be freely renegotiated. The PZP limits scope changes to 50% of the original contract value and requires formal amendments recorded in the KRS-linked procurement register. Foreign investors accustomed to informal variation orders will find this rigid. Any variation that exceeds statutory thresholds without a formal amendment is void – and the work done under it may go uncompensated.

For investors with regional portfolios, the interaction between Polish construction disputes and cross-border financing structures is a recurring issue. A project financed through a Luxembourg holding vehicle, for instance, requires careful coordination between the DAB process and the lender's step-in rights. Readers managing such structures may also find it useful to review office lease review considerations for regional tenants, which addresses parallel issues of lease and construction obligations across jurisdictions.

One practical point on language: FIDIC contracts in Poland are frequently executed in Polish only, even on international projects. Where the governing law is Polish and the contract language is Polish, foreign investors face a translation risk in arbitration. Ensuring the contract is bilingual – or that a certified translation is prepared before the project starts – costs a fraction of the dispute resolution fees that arise later.

For a tailored strategy on cross-border FIDIC dispute management, reach out to info@kordeckipartners.com. If your project involves a Polish public contract and a foreign financing structure, the intersection of PZP and FIDIC requires specialist input before the first claim notice is issued.

Specific cross-border structures create irreversible risk if left unmanaged. Contact info@kordeckipartners.com to discuss how the Polish statutory framework applies to your contract before disputes arise.

What should you prepare before a FIDIC dispute in Poland?

Early preparation determines the outcome. Parties that have maintained contemporaneous records – daily site reports, Engineer's instructions in writing, correspondence logs – consistently outperform those who reconstruct events after the fact. Under Polish evidence law, electronic communications are admissible, but authenticity must be demonstrable. A contract management system that timestamps all communications is worth more than any single legal argument.

The checklist below reflects the minimum preparation standard for a FIDIC dispute in Poland. It applies whether you are the employer, the contractor, or a subcontractor pursuing a claim through the main contractor.

Confirm the DAB is constituted and the DAB agreement is signed
Identify all 28-day notice deadlines and calendar them immediately
Compile a contemporaneous record of delay events with dated supporting documents
Obtain a certified Polish-language translation of any English-language contract sections
Identify the arbitration clause – seat, rules, language, number of arbitrators

Subcontractors face an additional layer of complexity. Polish civil law does not give subcontractors a direct FIDIC claim against the employer. Their claims run through the main contractor. However, the PBA imposes joint and several liability on the investor and the general contractor for subcontractor payments up to the agreed subcontract price. This statutory protection – available within 3 years of the payment falling due – is separate from and additional to the FIDIC mechanism.

Readers dealing with corporate restructuring alongside a construction dispute – for instance, where the contracting entity is being wound down – should also review the process and timeline for liquidating a Polish limited liability company. A company in liquidation retains the right to pursue and defend FIDIC claims, but the liquidator's authority and the timing of distributions must be managed carefully.

Frequently asked questions

Q: Can a FIDIC DAB decision be enforced directly through Polish courts without going to arbitration?

A: Yes. A final and binding DAB decision is a contractual obligation under Polish civil law. If a party refuses to comply, the other party may bring a claim before the Regional Court for payment of the sum awarded. The court does not re-examine the merits of the DAB decision – it enforces it as a contractual debt. The enforcement process typically takes 3 to 6 months through the Polish court system.

Q: How long does FIDIC adjudication typically take in Poland, and what does it cost?

A: From referral to DAB decision, the standard period is 84 days. In practice, complex claims on GDDKiA contracts have taken up to 120 days where the DAB granted an extension. DAB member fees range from EUR 300 to EUR 600 per day per member, plus travel and accommodation. For a three-member DAB, total fees on a mid-size dispute typically fall between EUR 30,000 and EUR 80,000, shared equally between the parties unless the DAB decides otherwise.

Q: Is it a misconception that FIDIC arbitration must always go to the ICC?

A: Yes, this is a common misconception. Standard FIDIC conditions refer disputes to ICC arbitration, but the parties may agree in the particular conditions to use a different institution. On Polish domestic public contracts, arbitration before the Court of Arbitration at the Polish Chamber of Commerce (SAKiG) is a permitted and frequently used alternative. SAKiG proceedings are conducted in Polish, are generally faster than ICC proceedings, and produce awards enforceable across the European Union under the New York Convention.

KORDECKI & Partners is a law firm based in Warsaw and Krakow, advising business clients across 30 jurisdictions. Our team combines expertise in Polish and international law with a practical approach to construction disputes, FIDIC adjudication, and real estate transactions. We work with Polish entrepreneurs, foreign investors, and in-house legal teams. To discuss your situation, contact info@kordeckipartners.com.