Arbitration in governmental contractual contracts

Government entrusts performance of certain functions to private contractors by signing an administrative contract called contractual agreement.in this contract that is held between administrative agency as employer and a real person or a legal entity as contractor. It is quite natural that there may arise dispute or disagreement in execution and interpretation of the contract between parties to the contract. As for a public affair to be continued, settlement of dispute is necessary so that fulfillment of public affair is not impeded. Arbitration is one of the best technique that is used in this regard. This method, in addition to quick proceeding has the necessary accuracy and reliability in settlement of disputes which is also applicable in governmental contracts. Arbitration in article 63 of general conditions of contract which determines provisos of these contracts has been stipulated for settling disputes of governmental contracts. This paper aims to explain how arbitration is formed, executed and terminated.