It is the client that uses ARP for conflict detection, as specified in RFC 5227, which clarifies some details that are already mentioned in the DHCP specification:
-- the existing Address Resolution Protocol (ARP) provides an easy
way for a host to detect this kind of misconfiguration and report
it to the user. The DHCP specification [RFC2131] briefly mentions
the role of ARP in detecting misconfiguration, as illustrated in
the following three excerpts from RFC 2131:
the client SHOULD probe the newly received address, e.g., with ARP
The client SHOULD perform a final check on the parameters
(e.g., ARP for allocated network address)
If the client detects that the address is already in use
(e.g., through the use of ARP), the client MUST send a DHCPDECLINE
message to the server
The RFC 5227 also extends from DHCP to all IPv4 address usage:
2.1. Probing an Address
Before beginning to use an IPv4 address (whether received from manual
configuration, DHCP, or some other means), a host implementing this
specification MUST test to see if the address is already in use, by
broadcasting ARP Probe packets. This also applies when a network
interface transitions from an inactive to an active state, when a
computer awakes from sleep, when a link-state change signals that an
Ethernet cable has been connected, when an 802.11 wireless interface
associates with a new base station, or when any other change in
connectivity occurs where a host becomes actively connected to a
logical link.
A host MUST NOT perform this check periodically as a matter of
course. This would be a waste of network bandwidth, and is
unnecessary due to the ability of hosts to passively discover
conflicts, as described in Section 2.4.
Assuming Windows DHCP server, the server-side conflict detection using ICMP echo requests (ping) is disabled by default, and it's recommended not to use it except in some rare circumstances:
If your network includes legacy DHCP clients (clients running a
version of Windows earlier than Windows 2000), you can use server-side
conflict detection provided by the DHCP Server service under specific
circumstances. For example, this feature might be useful during
failure recovery when scopes are deleted and recreated. For more
information, see DHCP Troubleshooting.
By default, the DHCP service does not perform any conflict detection.
To enable conflict detection, increase the number of ping attempts
that the DHCP service performs for each address before leasing that
address to a client. Note that for each additional conflict detection
attempt that the DHCP service performs, additional seconds are added
to the time needed to negotiate leases for DHCP clients.