Arbitration not given by government departments to work
The Builders Association of India is now expecting an amendment in the Arbitration Act. This one will make institutional arbitration mandatory for contracts which are state awarded. Around three years ago, the proposal had been initiated when the Law Minister was Veerappa Molly.
Parmar, who happens to lead a 750 member association, told the Business Line during an interview that around 20-30% of the fraternity had moved towards the real estate development since the works of the Government were not that lucrative as such.
On being asked about what could be the real reason for dispute, Parmar who is the Senior Vice President of the Indian Institution of Technical Arbitrators said that there are several reasons for this. Sometimes the payments are not paid on time. The contractor will however be compensated if it happens although it is rare.
In every single contract, there is undoubtedly going to be a dispute. He himself hasn’t witnessed anything going so smoothly in his 28 year old career. Ultimately, it all depends upon the contractor as well as the officials. There could be some small and original lapses which will be accepted and the contracts will be handed over a concession.
Source – S Shanker
750 member association, amendment in the Arbitration Act, Builders' Association of India, Vice President of the Indian Institution of Technical Arbitrators
