Hindustan Construction Company (HCC) has signed terms with a consortium of investors led by BlackRock, who will seek to monetise an identified pool of arbitration awards and claims for a consideration of Rs 17.5 billion.
It is a well-known fact that India's judicial system is overburdened. There are over 2.18 crore cases pending in district courts across the country. Of this, around 22.5 lakh cases are waiting for a closure for the past 10 years.
This article proposes to suggest and discuss an alternative method of resolving construction disputes with respect to variations during the course of the project without recourse to an elaborate dispute resolution mechanism, thereby reducing the contractor´s burden of cash flow issues while protecting the principal´s rights on legal issues of variation to be dealt with other disputes, if any, at the end or termination of the project through a dispute resolution mechanism.
While issues related to banking and financing, claims and contracts continue to discourage contractors, CW highlights problem areas and offers 16 concrete solutions that will help resolve issues and make the construction sector a success.