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Dispute Resolution

Plain-language definitions of every Dispute Resolution term that shows up in government tender work.


Dispute Resolution

Appeal Process

The Appeal Process in Indian government procurement is the formal mechanism by which aggrieved bidders or contractors escalate disputes about tender decisions, award outcomes, or contract actions to higher authorities.

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Dispute Resolution

Arbitration Clause

An Arbitration Clause is the contractual provision in a government tender document specifying how disputes will be referred to arbitration, including the number of arbitrators, appointment process, and seat of proceedings.

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Dispute Resolution

Arbitration in Government Contracts

Arbitration in government contracts is the primary alternative dispute resolution mechanism under which contractual disputes between the government and contractors are resolved by an independent arbitral tribunal.

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Dispute Resolution

Conciliation

Conciliation is a voluntary dispute resolution process in Indian government contracts where a neutral conciliator assists the parties to reach a mutually acceptable settlement without formal arbitration.

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Dispute Resolution

Cure Period

A Cure Period is the contractually stipulated time given to a defaulting contractor to remedy a specified breach before the government proceeds with termination of the contract.

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Dispute Resolution

Debarment

Debarment is the formal exclusion of a contractor or supplier from participation in government tenders due to serious misconduct, fraud, or breach of contract, typically for a defined period or permanently.

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Dispute Resolution

Dispute Resolution Board

A Dispute Resolution Board (DRB) is a standing panel of independent experts established at project inception to assist in resolving disputes between the government and contractor on large infrastructure projects.

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Dispute Resolution

Encashment of Bank Guarantee

Encashment of Bank Guarantee is the act by which a government beneficiary presents a bank guarantee to the issuing bank and receives payment, typically triggered by a contractor's default or non-performance.

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Dispute Resolution

Forfeiture of EMD

Forfeiture of EMD is the government's right to retain the Earnest Money Deposit of a bidder who withdraws their bid, fails to submit a PBG, or declines to execute the contract after being awarded the tender.

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Dispute Resolution

Forfeiture of PBG

Forfeiture of PBG (Performance Bank Guarantee) is the government's encashment of the contractor's performance security when the contractor defaults on contract obligations or fails to rectify defects.

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Dispute Resolution

Grievance Redressal in Procurement

Grievance Redressal in Procurement encompasses the mechanisms available to suppliers, contractors, and citizens to raise concerns about government procurement decisions, processes, and outcomes.

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Dispute Resolution

Show Cause Notice

A Show Cause Notice is a formal written communication from a government department to a contractor asking them to explain why a specified action (LD, termination, or banning) should not be taken against them.

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Dispute Resolution

Termination for Convenience

Termination for Convenience is the government's contractual right to end a contract before completion for administrative or policy reasons, with the contractor entitled to payment for work done and reasonable demobilization costs.

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Dispute Resolution

Termination for Default

Termination for Default is the government's right to end a contract and forfeit the contractor's guarantees when the contractor fails to perform its contractual obligations despite notice and a cure period.

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