Gujarat: Reinstate arbitration clause, says Contractors

Contractors have reiterated their demand of inclusion of 'Arbitration Clause' in government tenders. Its replacement by a tribunal has resulted in thousands of pending cases blocking an estimated Rs 1,000 crore of these businessmen. Moreover, unfair tenders has also resulted in local contractors scouting for businesses in other states.

Nainesh Shah, secretary of the Gujarat Contractors Association (GCA) informed that over a decade ago, every government tender had a clause for arbitration. There would be representative of the contractor and one for the government who will arrive at a joint decision in case of a dispute. The decision of the arbitration panel would be binding to both the parties. "However, it has been replaced by a tribunal. It requires a technical expert and legal expert.

However, often no one is appointed in the panel. If they are appointed, the panel hardly meets so disputes remain unresolved," said Shah. While exact number of unresolved disputes is not available, as per conservative estimates at least 10,000 disputes are awaiting redressal. This has deprived contractors of at least Rs 1,000 crore that they are entitled to. Shah said this while briefing media persons about 'Vibrant Summit, Machinery Exhibition and Awards – 2019' function to be organized on June 22-23 in the city.

Shah also informed that for past many years, criteria of government tenders are structured in a manner that they suit only a select contractors. This has led to local contractors seeking works in states of Rajasthan, Madhya Pradesh, Bihar, Delhi, Andhra Pradesh, Telangana and others. The sector is also not immune from overall business slowdown. "While there are new tenders, one of the major problems is we are not getting payments on time. There is a delay of about four months," he said.

Close to 2,000 delegates and 5,000 contractors from across the state will attend the two-day event. Deputy Chief Minister Nitin Patel will present the awards.