New Arbitration Guidelines Aim to Identify Erring Officers and Pinpoint Responsibility in Project Escalations

The Public Works Department has introduced new guidelines to identify and hold accountable officers responsible for project escalations under arbitration. The department insists on court resolutions for disputes post-removal of the arbitration clause and mandates funding from client departments for awarded amounts in past agreements.

The Public Works Department (PWD) has unveiled new arbitration guidelines focused on accountability, targeting lapses by officers in projects that face cost escalations. According to the new procedures, officials who fail to control costs will have their lapses meticulously scrutinized, with responsibilities defined.

Previously, the PWD removed the arbitration clause from its contracts, signaling that disputes henceforth will undergo court resolution. Nonetheless, the department remains committed to resolving claims tied to existing agreements.

The guidelines empower the chief engineer to analyze adverse arbitral awards and recommend any necessary actions against officials. If arbitral awards significantly exceed costs, the responsible department must fund them. The recent Rs 300 crore loss in the Barapullah Phase 3 project highlights the need for improved strategies and accountability in managing public resources.

(With inputs from agencies.)