Delhi: The Delhi Public Works Department (PWD) has decided to endorse the Central Public Works Department’s (CPWD’s) panel of arbitrators for old cases, officials said on Wednesday.
The PWD has deleted the arbitration clause from its general conditions of contract (GCC) since June this year to reduce the incurred losses. According to the new conditions, in case of any dispute between the PWD and a private contractor, the matter will be dealt with in courts.
“While the rules have been changed for the new contracts, in the old ones where the matter has already been taken up, we need arbitrators, hence, an order has been issued to take up (CPWD) panel,” a senior PWD official said.
The PWD has been dealing with several legal matters for the past few years, mostly deriving from delays in projects as the construction cost shoots up beyond the initial estimated cost, putting a liability on the government.
“The list of empaneled arbitrators shall be used for ‘old’ arbitration cases where Clause 25 of the GCC remains applicable. This panel shall operate in addition to the existing PWD panel dated 17.03.2023 until further orders,” the latest order from PWD states.
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Five arbitrators, who have retired but are less than 70 years of age and have held engineering posts, are mostly selected for the panel.
In the case of the Barapullah Phase 3 elevated corridor, the Delhi government, suspecting irregularities in an arbitration case, has also ordered a vigilance inquiry.
According to the government, the elevated road project, originally scheduled for completion in October 2017, faced repeated delays and eventually went to arbitration. The arbitration ruling favoured the contractor, awarding Rs 120 crore.
Delhi Chief Minister Rekha Gupta has criticised the previous government for failing to file a review petition and for not taking action against the officers responsible.
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