Newsletter
AGENCIES SHOULD COOPER-ATE WITH SUPPLIERS' RE-QUESTS FOR ARBITRATION
On 9 August 2006, the Public Construction Commission (PCC) sent a letter to all levels of central government and to local governments, stating that if a subordinate agency and a supplier in a procurement case have gone through PCC mediation procedures, but the mediation has failed to produce any result because the parties did not agree on recommendations or proposals put forward, then in the interests of rapid and effective dispute resolution, and to promote ef-ficiency of procurement, if the supplier requests to arbitrate, the agency should in principle co-operate regardless of whether the original con-tract included arbitration clauses. The PCC also requested agencies to monitor whether their subordinate agencieshave rejected suppliers' re-quest for arbitration for no legitimate reason.