PPR 2007, Rule 129, 130, 131, 132, 133, 134 and 135

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.

130. Appointment of Adjudicator and Formation of Dispute Resolution Committee:

(1) The Adjudicator under Sub-rule (2) of Rule 129 shall be appointed by the consensus of the Public Entity and the concerned construction entrepreneur.

(2) The dispute resolution committee under Sub-rule (2) of Rule 129 shall consist of one member each appointed by the concerned construction entrepreneurs and the Public Entity and a third person appointed as the chairperson by such both members.

(3) If a consensus fails to be reached between the Public Entity and the concerned construction entrepreneur in respect of appointment of Adjudicator and dispute resolution committee under Sub-rule (1) or (2) or any party fails to appoint a member on the dispute resolution committee, appointment of the Adjudicator or the member of dispute resolution committee shall, unless otherwise provided in the procurement contract be made pursuant to the prevailing arbitration law..

(4) The person to be an Adjudicator or a member of the dispute resolution committee under Sub-rule (1) must have gained specialty on the work corresponding to the nature of the dispute and shall be a technical person having experience of at least five years.

131. Functions, Duties and Powers of the Adjudicator or Dispute Resolution Committee:

The functions, duties and powers of the Adjudicator and dispute resolution committee shall be set out in his/her appointment letter and in so setting the functions, duties and a powers, the Public Entity shall also set out among other matters, that the Adjudicator or dispute resolution committee shall visit the construction site in every six month.

132. Remuneration and Facility:

(1) The remuneration and other facilities of the Adjudicator or the chairperson and members of the dispute resolution committee and the source to meet such remuneration and facilities shall be as referred to in the procurement contract

(2) The liability of the remuneration and facility under Sub-rule (1) shall be equally borne by the Public Entity and the construction entrepreneur.

133. Dispute May be Lodged:

(1) The Public Entity shall have to mention in the procurement contract the manner of lodging dispute, if arisen, in respect of the implementation of such contract.

(2) The procurement contract, while mentioning the manner under Sub-rule (2), may provide that any dispute failed to be resolved amicably between the Public Entity and the constriction entrepreneur, supplier, service provider or consultant may lodge before the Adjudicator or dispute resolution committee according to the contract price by any one party out of such Public Entity or construction entrepreneur, supplier, service provider or consultant.

(3) In lodging a dispute pursuant to Sub-rule (2), the concerned party shall have to submit claim in writing by stating the matter of dispute failed to be resolved amicably and the supporting documents for such claim.

134. Decision Over Dispute:

(1) Within three days of receipt of claim under Rule 133, the Adjudicator or dispute resolution committee shall have to send a copy of such claim and documents to the concerned party asking for a response in respect thereof.

(2) The Adjudicator or dispute resolution committee may also carryout inquiry by making site inspection regarding the disputes under Sub-rule (1).

(3) The Adjudicator or dispute resolution committee shall deliver decision within thirty days of submission of dispute before him/it including taking into account the response under Sub-rule (1) and the inquiry under Sub-rule (2).

(4) The decision under Sub-rule (3) shall state the reasons and grounds for sustaining and not sustaining the claim of the concerned party.

135. Disputes to be Resolved Through Arbitration:

A party not satisfied with the decision under Rule 134 shall start, within thirty days of such decision being made, the proceedings of resolving such dispute through arbitration in accordance with the procedures set forth, if any, in the procurement contract and, if not so set forth, pursuant to prevailing law.

PWD Part III, Medium Contract, Clause 24 and 25.1, Condition of Contract

24. Disputes

24.1 If the Contractor believes that a decision taken by the Project Manager was either outside the authority given to the Project Manager by the Contract or that the decision was wrongly taken, the decision shall be referred to the Adjudicator within 14 days of the notification of the Project Manager’s decision.

25. Procedure for Disputes

25.1 The Adjudicator shall give a decision in writing within 28 days of receipt of a notification of a dispute.

25.2 The Adjudicator shall be paid by the hour at the rate specified in the Bidding Data and Contract Data, together with reimbursable expenses of the types specified in the Contract Data, and the cost shall be divided equally between the Employer and the Contractor, whatever decision is reached by the Adjudicator. Either party may refer a decision of the Adjudicator to an Arbitrator within 28 days of the Adjudicator’s written decision. If neither party refers the dispute to arbitration within the above 28 days, the Adjudicator’s decision will be final and binding.

25.3 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 Contract Data.^[25]

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^[25] For smaller contracts, this is usually an institution from the Employer’s country. For larger contracts, and contracts that are likely to be awarded to international contractors, it is recommended that the arbitration procedure of an international institution such as UNCITRAL (the United Nations Commission on International Trade Law), ICSID (the International Centre for Settlement of Investment Disputes) or the ICC (International Chamber of Commerce) be prescribed.