This ppt is about construction disputes

1. CONSTRUCTION DISPUTES
• Construction projects are generally complex , for this reason, delays
and disputes are always present
• Involved many parties.
• When a project ends up in a dispute, the project will fail to meet its
original goals and expectation.
• Clients will suffer from high legal fees, delayed completion and
occupation and general dissatisfaction.
• The contractor’s profits will diminish and to these will be added
additional legal fees.
1

2. CAUSES OF DISPUTES
• May arise on a construction project for a number of reasons:
Late or non-payment for works satisfactorily completed when
payment is due.
Inaccurate valuation of variations and works in progress.
Delays in the supply of general construction information
• Late issue of instruction varying some sections of the works.
• Shortcomings, omissions and errors in contract documentation giving
rise to ambiguities in contract requirements.
• Failure of contractor to construct the works diligently and to
programme.
2

3. DISPUTE RESOLUTION CLAUSE
A dispute resolution clause is an agreement within a contract which sets
out the mechanism for the resolution of disputes between the Contractual
parties. The scope of that agreement is determined in the drafting of the
clause. ... An increasingly popular alternative for commercial contracts is
arbitration
Arbitration
Arbitration is a legal technique for the resolution of disputes outside the
courts, wherein the parties to a dispute refer it to one or more persons
(the "arbitrators", "arbiters" or "arbitral tribunal"), by whose decision (the
"award") they agree to be bound.

4. As per the general conditions of contract (GCC) for
CPWD works 2007, the dispute resolution mechanism for
contracts concluded by C.P.W.D. Consists of following:
Reference to Engineer Authorities:
• As per clause 35 pertaining to settlement of disputes in arbitration
in the GCC for CPWD works 2007, all disputes with respect to the
contract shall be referred to the superintending Engineer (SE) in
writing within fifteen days of the cause of action.

5. • The SE shall give his decision in writing within one month of the
request from contractor.
• The contractor shall appeal to the Chief Engineer within
fifteen days of receipt of SE’s decision. The Chief engineer is
required to give his decision within thirty days of receipt or
contractor’s appeal after giving adequate opportunity to the
contractor to present his case

6. DISPUTE REDRESSAL COMMITTEE
• In case of dissatisfaction from Chief Engineer’s decision the
contractor can approach the DRC within a time limit of thirty
days. The DRC has to give its decision within ninety days.
• In case, any party is dissatisfied with the decision given by DRC, it
can invoke arbitration within thirty days from the receipt of
decision from DRC. In case, no such reference is made for
invoking arbitration, the DRC decision shall become final and
binding and the parties shall forfeit their right for reference to
arbitration.
• There shall be a standing committee which shall be constituted
for each zone separately for total claims up to twenty five lakh
and more than twenty five lakh. The committees shall comprise of
engineer members of CPWD of the ranks of Chief Engineer, SC

7. Arbitration:
• The fee to be paid to the arbitrator shall be shared equally by both
the parties before publishing of the award. However, the actual
distribution of the fee and cost of reference may be decided by the
arbitrator in the award.
Working during Arbitration:
• Unless the contract is already terminated, during the entire process
of dispute resolution the contractor shall continue to progress with
the work as per the contract conditions. Thus, there is no embargo
on proceeding with the resolution of disputes during the currency
the contract.

9. DESIGN, DEVELOPMENT & IMPLEMENTATION OFKNOWLEDGE WEB
PORTAL FOR SUSTAINABLE HABITAT IN INDIA
Settlement of Disputes
• If any dispute of any kind whatsoever shall arise between BMTPC and
Successful Bidder the parties shall seek to resolve any such dispute by
mutual consultation.
• If the parties fail to resolve, within 45 days of its arising, then the
shall be referred by either party by giving notice to the other party. No
arbitration may be commenced unless such notice is given.

10. In case the Successful Bidder is a Government Department
• the dispute shall be referred for resolution in Permanent Machinery for
Arbitration (PMA) of the Department of Public Enterprise, Government
of India. Such dispute shall be referred for Arbitration to the sole
Arbitrator in the Department of Public Enterprises
• However, any party aggrieved by such award they can further revise
award to the Law Secretary, Department of Legal Affairs, Ministry of
& Justice, Government of India.
• Upon such reference the decision shall be decided by the Law
/ Additional Secretary, that decision shall bind the Parties finally.
• The Parties to the dispute will share equally the cost of arbitration as
intimated by the Arbitrator.

11. In case the Successful Bidder is not a Government Department.
• In any dispute of any kind whatsoever arising under this contract
shall be referred to the Sole Arbitrator, the ED of BMTPC or to a
person appointed by him for the purpose.
• The arbitration shall be conducted in accordance with the
provision of the Indian Arbitration and Conciliation Act, 1996.
• The Arbitrator may from the time to time, with the agreement of
all parties extend the time in making the award.
• The cost incidental to the arbitration shall be at the discretion of
the Arbitrator.
• Notwithstanding any dispute between the parties Successful
Bidder shall not be entitled to withhold, delay or defer his
obligation under the contract and same shall be carried out
in accordance with the terms & conditions of the contract.

12. • The arbitrator shall give his reasoned award with respect to the disputes
referred to him by either of the parties.
• If for any reason an arbitrator is unable to perform its function, the
mandate of the Arbitrator shall terminate in accordance with the
provisions of applicable laws as mentioned in GCC Clause
• (Applicable Law) and a substitute shall be appointed in the same
manner as the original arbitrator.
• Arbitration proceedings shall be conducted with The Arbitration and
Conciliation Act, 1996.
• The parties shall continue to perform their respective obligations under
the agreement unless otherwise agreed mutually.

13. NATIONAL THERMAL POWER
CORPORATION LIMITED (NTPC)
• In the event of any query, dispute or difference whatsoever arising under this contract
or in connection with any question relating to existence, meaning and interpretation of
[his contract or any alleged breach thereof, the same will be referred to the sole
arbitrator of the General Manager of the NTPC or to a person appointed by him for the
purpose. The arbitration shall be conducted in accordance will the provisions of Indian
Arbitration Reconciliation Act, 1996

14. • It will be no objection that the Arbitrator is an interested person and/or that he had to
deal with the matters to which the contract relates and/or in the course of his duties he
expressed any view on any mutter in dispute. The award of arbitrator shall be final and
binding.
• In the event of Arbitrator dying, neglecting, resigning or being unable to act for any
reason or his award being set aside by the court for any reason, it will lawful for the
General Manager of the NTPC to appoint another Arbitrator in place of the outgoing
Arbitrator.

15. • It is further terms of this agreement that no person other than
the person shall act as an Arbitrator and that, if for any reason
that is not possible, the matter should not be referred to
arbitration at all.
• The Arbitrator may from time to time, with the consent of nil
parties enlarge the time ill making the award.
• The cost incidental to the arbitration shall be at the discretion
of the Arbitrator; the arbitration shall be conducted in NEW
DELHI or at such other places where arbitrator may decide.

16. • Not withstanding any dispute between the parties Supplier shall
not be entitled to withhold delay or defer his obligation under
the contract and same shall be carried out strictly in accordance
with terms and condition of contract.
• In the event of dispute or difference arising between parties the
public sector enterprise and Government, the provision of BPE
office memorandum No BPE/GL001/76/MAN/2110-75-BPE
(GML-1) dated 1st January 1976 shall be applicable.