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.
