Step 4: The Contractor’s Submission Statement
The Project Manager shall promptly assess the Contractor’s submission, together with the field engineer’s clarification of the issue, and state his decision: which may be agreeing (wholly or in part) both the cost and time claim, agreeing (wholly or in part) the time claim only, or rejecting the claim. If the decision is not accepted by the Contractor, there are three options to resolve the matter: amicable settlement by negotiation, reference to an Adjudicator, reference to a Dispute Board, refer ▬►PPR-2007, Chapter-12, Rule 129, ▬►SBD (for medium contract for construction of bridge)Section IV,GCC: Clause 23,: Dispute Settlement, Clause 24: Appointment of the Adjudicator/DRC Members, Clause 25: Procedures for Disputes.,
PPR - 2007, Chapter 12, Rule 129
129. Mechanism Relating to Dispute Resolution:
(1) A procurement contract may provide a mechanism of resolution of dispute that may arise between the Public Entity and a construction entrepreneur, supplier, service provider or consultant in the course of implementation of the procurement contract.
(2) In providing mechanism for resolution of dispute pursuant to Sub-rule (1), it may be mentioned that a dispute of the procurement contract having contract price valuing up to one hundred million Rupees shall be resolved by an Adjudicator and a dispute of the procurement contract having contract price more than that shall be resolved by a three-member dispute resolution committee.
SBD
23.1 The Contractor shall carry out all instructions of the Project Manager which comply with the laws of Nepal.
23.2 The Contractor shall permit the Donor Agency to inspect the Contractor's accounts and records relating to the performance of the Contractor and to have them audited by the auditors appointed by the Donor Agency, if so required by the Donor Agency.
24. Appointment of the Adjudicator/DRB members
24.1 The Adjudicator shall be appointed jointly by the Employer and the Contractor, at the time of the Employer's issuance of the Letter of Acceptance or within 30 days of the Start date of the contract. If, in the Letter of Acceptance, the Employer does not agree on the appointment of the Adjudicator or the parties cannot reach an agreement on the appointment of the Adjudicator, the Employer will request the Appointing Authority designated in the SCC, to appoint the Adjudicator within 15 days of receipt of such request.
24.2 Should the Adjudicator resign or die, or should the Employer and the Contractor agree that the Adjudicator is not functioning in accordance with the provisions of the Contract; a new Adjudicator shall be jointly appointed by the Employer and the Contractor. In case of disagreement between the Employer and the Contractor, within 30 days, the Adjudicator shall be designated by the Appointing Authority at the request of either party, within 15 days of receipt of such request
24.3 The DRB if specified in Bidding Data/ SCC shall be formed within 30 days of the Start date of the contract. The Dispute Resolution Board (DRB) shall comprise of three members. Each Party shall appoint one member each and the third party who shall act as the Chairman shall be appointed by the two members appointed by the Parties.
24.4 If a DRB member declines to act or is unable to act as a result of death, disability, resignation or termination of appointment, a replacement shall be appointed in the same manner as the replaced member was required to have been appointed.
25.1 If any dispute shall arise due to the decision taken by the Project Manager, which the Contractor believes was either outside the authority given to the Project Manager by the Contract or that the decision was wrongly taken, then the parties shall attempt to settle such dispute amicably within 15 days of the notification of the Project Manager's decision. However if the dispute is not settled amicably or no attempt is made to settle the dispute amicably then the decision shall be referred to the Adjudicator or DRB as specified in Bidding Data/ SCC within 30 days of the notification of the Project Manager's decision.
25.2 The Adjudicator or DRB shall give a decision in writing within 30 days of receipt of a reference of a dispute pursuant to Sub- Clause 25.1.
25.3 The Adjudicator or the DRB Members shall be paid by the hour at the rate specified in the SCC, together with reimbursable expenses of the types specified in the SCC, and the cost shall be divided equally between the Employer and the Contractor, whatever decision is reached by the Adjudicator or DRB. Either party may refer a decision of the Adjudicator or DRB to an Arbitrator within 30 days of the Adjudicator's or DRB's written decision. If neither party, refers the dispute to arbitration within the above 30 days, the Adjudicator's or the DRB's decision will be final and binding.
25.4 In case of arbitration, the arbitration shall be conducted in accordance with the arbitration procedures published by the institution named and in the place shown in the SCC.