Contractors to get 75% funds under new rule

To address liquidity issues facing the construction sector, the government has framed rules that will allow for the release of 75% of the amount to contractors against a bank guarantee in cases where a department has challenged an arbitral award.

The Cabinet Committee on Economic Affairs (CCEA) had in November 2019 permitted government departments to pay contractors 75% amount awarded to a contractor by a dispute settling arbitration panel.

This was to be done in cases where the arbitration award has been challenged.

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