Clause 13 of the Public Works Contracts was amended in 2016 by introducing the use of Project Boards (PB) and Standing Conciliator (SC) for the purpose of fostering a greater level of dispute avoidance. However, because of how clause 13 is drafted, the opportunity to avoid disputes can be lost as the PB only first sees sight of a claim when it has already been determined by the ER and disputed by the Contractor. Therefore, the dispute horse has already bolted before the PB, and SC gets a chance to work its magic to avoid disputes occurring in the first place.
To allow the PB and SC play a more significant role in dispute avoidance, the Government Contracts Committee for Construction (GCCC) now intends to amend the existing dispute resolution mechanisms in the public works contract (see clause 13.1) to address issues more efficiently from a time and cost perspective. It also proposes an adjustment to the role of the SC to create a stronger forum for dispute avoidance once either party raises an issue. A greater emphasis will be placed on the dispute avoidance aspect of conciliation.
The GCCC intend to strengthen the dispute avoidance aspect of conciliation by applying conciliation earlier in the dispute lifecycle by inserting the SC more formally into a dispute avoidance role by having them chair PB meetings, which are triggered once an issue is raised by either party and before a claim is submitted under clause 10.3 of the contract. While issues are actively and collaboratively being discussed, the GCCC intend that escalation measures under clause 10.3 be paused.
Parties now have some breathing space by stopping the clock on clause 10.3.1, thereby enhancing the role of dispute avoidance and promoting greater use of the Standing Conciliator
A summary of the proposed changes to the existing dispute resolution mechanisms in the public works contract is as follows:
Also, as the current position of the SC under clause 13.1 Dispute Management Procedure is it is not mandatory for the parties to have the SC attend or chair the PB meetings (see clause 13.1.2 (6)), to enhance the role of the SC in dispute avoidance as well as resolution, the GCCC propose to make it mandatory on the parties to have the SC Chair the PB in contract forms PW-CF1 to PW-CF4 inclusive (where a SC is appointed).
The GCCC should be commended for proposing the above changes, which allow the parties some breathing space by stopping the clock on clause 10.3.1, thereby enhancing the role of dispute avoidance and promoting greater use of the SC. This should stop the galloping of claims towards clause 10.3 and prevent disputes from occurring.
The GCCC’s full set of proposed changes can be found here, where observations are invited up until 5 pm on 22 August 2025.
