It is not unoften that dispute arise between the contractor and the Government is regard to the execution of the contract. Though all efforts are made by this Directorate to resolve them amicably ,yet in certain cases ,this may not be possible .Accordingly a provision has bee made in clause 18 of Schedule `B’ i.e conditions of the contract for the settlement of such disputes through arbitration.
Reference of the dispute to an arbitrator can be made at the instance of the either party i.e contractor or the Government. However, the consent of both the parties for referring the matter to arbitrator is necessary.
Whenever a reference is made to the contractor by the Directorate for giving consent for referring the dispute to arbitration, the contractor should gave their consent promptly within a period mentioned in the letter failing which action for the appointment of the arbitration through the court of competent jurisdiction is initiated by the Directorate without any further reference to the contractor.
The arbitrators are appointed from amongst a penal of I.A.S officers by the State Government .The arbitrator is normally required to give the award after hearing both the parties within 4 months and in case for any reasons he is not able to do so ,the period can be extended with the mutual consent of both the parties.
The contractors are advised in their own interest to avoid litigation as for as possible and try to settle the dispute amicably with the Government.