New Delhi, June 4 -- The Delhi Government's Public Works Department (PWD) has deleted the arbitration clause from its general conditions of contract to reduce the increasing financial losses. According to the new conditions, in case of any dispute between the PWD and a private contractor, the matter will be dealt with only in the courts.
"The arbitration clause has been removed from our new tenders. Originally the motive behind arbitration clauses was to fast-track any disputes instead of litigation, but in most of the cases that went for arbitration, the Government was incurring heavy financial losses," PWD Minister Parvesh Verma said.
In the Barapullah Phase 3 project, the Government lost around '300 crore because the PWD did not make a...