Construction Development Board

24th National Arbitration Committee Meeting held.C Meeting

Posted on 3rd October, 2013

24th NAC meeting on 24th September 2013:

1.      M/s. Bhutan Builders and M/s. D. K Engneering and Construction Pvt. Ltd Vs. Department of Roads, MoWHS

NAC arbitrated contractual dispute (termination of contract and forfeiture of performance security by DoR, MoWHS) for the work “Construction of Amo-Chu Birdge”.

2.      M/s. Tshering construction and Department of Agriculture, MoAF

NAC arbitrated contractual dispute (Levying of Liquidity damages) for the work “Construction and Electrification of Common Facility Centre, at Trongsa”.

The NAC will convene 2nd round of NAC meeting to decide on the arbitral award.



23rd NAC meeting, 6th June 2013

1. M/s T Kunzom Pvt. Ltd Vs Department of Civil Aviation, MoIC

NAC members deliberated on the decision of 2nd round of meeting convened on 18th April 2013. NAC issued arbitral award as under:

i. The contractor to submit its justification for earthwork excavation and the client to review the submission of the contractor.

ii. The parties to compute the transportation quantity.

iii. NAC upholds the decision of the client to recover the excess payment made to the contractor on account of double measurement despite the discrepancies in the quantity set out in the BoQ.

iv. Contractor is entitled to deviation claim in principle and directs the client to review the submission of the contractor in line with the provisions of the contract agreement.
v. Any miscellaneous works executed or quantity under dispute verified should be compensated as per the contract terms and conditions.
vi. The interest for the delayed payment should be paid as per the contract terms and conditions.

Upon convening three rounds of meeting, the NAC issued Arbitral award on 20th June 2013.



2. M/s. Lhomon Builders Vs Thimphu Thromde

NAC deliberated the dispute on final payment difference over the bill amount attributed due to price adjustment claim and additional claim for RMM wall.

 1. Price Adjustment

Since there was disagreement amongst members, the NAC decided to convene next round of meeting to further scrutinize on this issue.

2. Payment for RRM Wall

The contractor has executed the work and should be compensated for work physically executed.


2nd round of 23rd NAC meeting, 6th July 2013

1. M/s. Lhomom Builders Pvt. Ltd Vs. Thimphu Thromde

NAC deliberated on the dispute on the price adjustment between the parties. The meeting discussed at length on the interpretation of the Executive Order and the notification.

Since there is an ambiguity in dates ( 12th July, 2010/9th Nov, 2010), i) for enfrocement of the orders and implementation of the changes as per the notices, and ii) whether to apply executive order/notification for ongoing works and tendered works which were intitiated on or before the said dates mentioned in the orders. The Secreatariat was instructed to wirte to PPPD, MoF to find out which date to be considered as date that will make the orders come into effect. NAC decided to issue Arbitral Award accordingly.

Upon receipt of the Legal Opinon from the OAG (on 3rd September 2013), the NAC issued arbitral award on 12th September 2013 .

22nd NAC meeting, 18th April 2013

1.      M/s T Kunzom Pvt. Ltd Vs Department of Civil Aviation, MoIC (second round)

The NAC after going through the RAAs letter (RAA (AG-SP) 2013/943 dated 9th April) and the Audit Main report has noted the drastic changes that came about in the recovery positions after their (RAA and DCA) second consultations and review.

NAC instructed the DCA to share the findings and similarly instructed the contractor to follow up with the DCA.

NAC asked the parties to sit together and carry out further verifications jointly so that they reach an agreement on the findings. However, if the parties disagree, the parties were asked to report to the NAC for further deliberation and review.

Miscellaneous claim and interest claimed by the contractor, the NAC felt that the contractor must be compensated for the work executed as per the contract.


2.      M/s. Kawang Constrcution Vs. Phuntsholing Dungkhag

NAC arbitrated contractual dispute on (termination of contract and imposition of LD and penalty) for the work “construction of Pachu Community Primary School” at Phuntsholing.

The NAC issue arbitral award on 21st May, 2013, stating that “the termination of contract and imposing penalty by the Dungkhag on the ground of not completing on time was as per the contract terms and conditions”.



21st NAC meeting, 28th March 2013

M/s. T-Kunzom Const. Pvt. Ltd Vs. DCA, MoIC

The NAC deliberated the contractual dispute (on recovery for the findings of RAA), for the work “construction of Gelephu Airport”. The NAC deliberated on the following issues:

  1. Excess payment for earthwork excavation/transportation due to non-estimation of earth work excavation,
  2. Unjustified payment on transportation of spoil materials,
  3. Excess payment in execution of DBM and asphalt concrete,
  4. Overpayment due to inflation of qtys of works of DBM and Asphalt Concrete (AC) work in BoQ and pre-final bill,
  5. Deviation,
  6. Miscellaneous claims, and
  7. Interest.


Since the parties were having review meeting with the RAA and the MoIC was getting revised findings, the NAC decided to sit for another round or two for further deliberation.

20th NAC meeting, 18th November, 2012

M/s. Alpha Beta Construction Vs. DoR Project Office, Tingtibi

The NAC arbitrated the dispute on Variation for the work “Construction of Retaining Wall, Gabion wall and RCC Hume Pipe”.

The NAC issued arbitral award on 3rd December 2012, stating:

  1. Contractor is entitle for claim for variation as per the contract.
  2. The parties to work out the additional claim.
  3. Contractor has discretion whether to accept or reject additional work by the client to compensate the deviation at the end of the project duration.