- Dispute Resolution Procedures

Dispute resolution procedures are the mechanisms used to address disagreements that may arise between the announcing party and contractors or suppliers during or after project implementation. These procedures aim to achieve justice and ensure the continuity of work without disruption.

Common Types of Disputes

1. Delay in Execution: Failure to adhere to the predetermined schedule.
2. Low Quality: Execution of work with less quality than agreed upon.
3. Financial Disputes: Such as delayed payments or additional claims.
4. Contract Breach: Such as failure to provide the required equipment or labor.

Dispute Resolution Mechanisms

1. Direct Negotiation: Attempting to resolve the dispute between parties without external intervention.
2. Technical Committees: Forming a neutral committee to review the dispute and provide recommendations.
3. Arbitration: Resorting to a neutral third party to decide the dispute.
4. Litigation: Bringing the dispute to the competent court to obtain a judicial ruling.

Benefits of Dispute Resolution Procedures

1. Cost Reduction: Amicably resolving disputes reduces legal costs.
2. Maintaining Relationships: Negotiation and arbitration promote cooperation between parties.
3. Project Continuity: They contribute to reducing stoppages and ensuring work continuity.

Challenges in Dispute Resolution

• Delay in Resolution: Some mechanisms may take a long time.
• Lack of Party Consensus: It may be challenging to reach an agreement satisfactory to all.
• Legal Costs: Resorting to litigation or arbitration may add financial burdens.

Dispute resolution procedures are considered an essential part of contract management and tenders to ensure project continuity and achieve justice between parties.