The Practical Impact of Amendment to Article 85-1, Section 2 of the Government Procurement Act A Report from Taiwan

Abstract

The amendment to Article 85-1, section 2 of the Taiwanese Government Procurement Act, promulgated on July 4, 2007, is generally regarded as the most important change made in the field of Taiwanese construction law in recent years. The new law provides an avenue for contractors to refer disputes arising from government procurement construction contracts to arbitration without a written arbitral agreement, when certain criteria are met. This is quite noteworthy because it deviates from the general requirement for a written arbitration agreement. Furthermore, various questions relating to the application of the amendment also demonstrate that the concise language of such amendment is not sufficient to cope adequately with the needs in practice. This article aims to highlight and analyze major controversial issues relating to the amendment with available administrative interpretation letters and jurisprudence in the hope of providing a better picture of the application of the new law.