Analysis of Compensation for Delay and Settlement of Disputes Clauses in CPWD Contract Guidelines

The construction industry is an industry where multiple parties are involved in the completion of a project. Risks in the construction industry include both threats to and opportunities in a project. The majority of construction works in India are modeled on General Conditions of Contract (GCC) formulated by the Central Public Works Department (CPWD). Public Works Contracts have many limitations and are prone to disputes. This paper analyses clause 2, 5, and 25 of CPWD GCC 2020. They are clauses on compensation for the delay, time and extension for the delay, and settlement of disputes and arbitration. This paper aims to study the remedy for delay and disruption according to clauses in CPWD GCC and to make recommendations for optimal and effective contract management from the data collected through the survey. A questionnaire is prepared on these 3 clauses and the responses are analyzed and recommendations are made based on the responses collected.