1. In case of any disputes or differences between the parties to the contract, the contractor should put his claims in writing within 15 days to the Chief Engineer, RWS, PR, Vijayawada for settlement. 2. For claims upto Rs.5.00 lakhs, the decision of the Chief Engineer, RWS, PR, Vijayawada is final and binding on both the parties. For claims in excess of Rs.5.00 lakhs, and if the contractor is not satisfied with the decisions of the Chief Engineer, RWS, PR, Vijayawada , for claims up to 5.00 lakhs he may ask the department in writing for arbitration within 30 days of communication of written decision. 3. The contractor may seek appointment of arbitrator from the panel of persons appointed by the department. 4. If the contractor does not refer the dispute to the department for arbitration within the above 30 days, the decision of the Chief Engineer (RWS) will be final.