CONTENTS - Central Public Works Department

SECTION 35
(2) If the work has been completed, the final bill should be prepared as early as possible, and in any
case before the disputes are referred to arbitration. The Superintending Engineer/Executive
Engineer should ensure that the bills are finalized immediately, if not already done.
(3) The Executive Engineer shall inform the authority with whom Extra/Substituted/Deviations/RR
items are pending about the arbitration case with a request to approve the items immediately. The
concerned authority shall ensure that all such pending items are finalized before CSF is submitted.
(4) A detailed note on the facts of the case dealing with each and every item of the claims and/or
counter claims should be prepared by the Executive Engineer, along with reference to various
relevant documents supporting the Government case or negotiating the contractor’s claim(s).
35.5 Processing of contractor’s application
(1) The Executive Engineer shall send one copy of the application of contractor direct to the Chief
Engineer with the under-noted information, without waiting for a reference from the Chief Engineer,
within 15 days from the date of receipt of the contractor’s application in his office, with a copy to
Superintending Engineer. The Superintending Engineer should send his report to Chief Engineer
immediately.
(a) An attested copy of relevant arbitration clause.
(b) A note regarding verification of the factual data furnished by the contractor in the application
form.
(c) Brief comments on each claim of the contractor. While giving such comments, the admissibility
of the claims in the light of arbitration clause and Limitation Act, should be kept in view and
commented upon.
(d) Statement of counter claims of the Department, if any. However, if counter claims are not
readily enlisted or available, comments on contractor’s claims should not be delayed.
35.6 Appointment of Arbitrator
(1) The standard form of appointment letter at Appendix 34 is to be used for appointing an Arbitrator.
(2) In those cases where the amount of the claim is less than Rs.1,00,000 (Rupees One lakh), para 2
of the standard form should be deleted. (Para 2 states that the Arbitrator shall give reasons for the
award if the amount of claims in dispute is Rs. one lakh or above).
(3) The Government of India have appointed a panel of Arbitrators in the Ministry, and generally the
cases of disputes between the Government and other parties are referred to the sole arbitration of
one of them as may be decided by the Chief Engineer/Director General (Works).
(4) The person thus appointed shall be the sole Arbitrator, and his award shall be final and binding on
all parties to the contract, unless it is set aside by the Court.
(5) Whenever a notice for appointment of an Arbitrator is received from a contractor in terms of clause
25 of Agreement Forms No. CPWD 7 and 8 (and corresponding clauses in other forms), the Chief
Engineer should process the case so as to appoint an Arbitrator within 30 days from the receipt of
such a notice. The time limit of 30 days for appointment of Arbitrator should be strictly adhered to.
(6) In cases where no agreement exists, or where no clause exists in an agreement for referring the
matter of dispute to the sole arbitrator of a person to be appointed by the Chief Engineer/Director
General (Works), the disputes should not be referred to arbitration by mutual consent and no
agreement should be drawn up for this purpose.
(7) The authority of an appointed Arbitrator does not become revocable except with the order of the
Court. It shall not be revocable by the death of any party or parties to the contract.
(8) The draft letter for appointment of a new Arbitrator due to transfer or vacation of office by the old
Arbitrator shall be as per Appendix 35.
35.7 Action subsequent to appointment of Arbitrator
(1) When the Arbitrator enters into reference and writes to the parties to the contract to file the statement
of facts and counter statement of facts before him, the Executive Engineer should take prompt
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