The Cabinet Secretariat vide letter number COM/04/04/902 dated December 03, 2004 conveyed the approval for the establishment of the Interim National Arbitration Committee (INAC) with the Construction Development Board and thereafter CDB facilitated arbitration of construction related contractual disputes.
The Arbitration was however suspended for the past six months, due to the lack of quorum of the INAC. In the interest of ensuring remedies to parties in dispute, CDB endeavored to set up new mechanism of arbitration complying Alternative Dispute Resolution (ADR) Act 2013. The 93rd Lhengye Zhungtshog sessions of December 22, 2015 approved the facilitation of arbitration by CDB, to train and maintain the list of panel of arbitrators with CDB till the inception of Alternative Dispute Resolution Centre mandated by section 4 of the ADR Act.
With reference to approval of Hon'ble Zhabtog Lyonpo and in compliance to section 139 of the ADR Act vide CDB-16/2015-16/575 dated 1st April 2016, CDB is pleased to notify that suspension of arbitration is lifted and fees related to arbitration have been revised as follows:
1. Arbitration fees (to be paid by parties) : Revised from approved fee amount of Nu. 15,000.00 per party per case to Nu. 20,000.00 per party per case.
2. Arbitrator's fees : Revised from an amount of Nu. 5,000.00 approved in principle by the cabinet to Nu. 10,000.00 per arbitrator per case.
This order shall come into effect retrospectively from March 30, 2016.
Construction Development Board
April 5, 2016