Arbiter-decisions (binding & contractual position), penalty for non-compliance.
How are the Arbiter's decisions binding ie through the contracts or through another mechanism?
Section 229 of the Greater London Authority Act 1999 gives the parties to a PPP contract the ability to refer matters specified in the PPP agreement to the Arbiter for a direction. Where a matter is referred to the Arbiter he is required to make a determination which shall be final and binding. While there is no appeal from the Arbiter's decision, his decision would be susceptible to judicial review.
What is the penalty for non-compliance with a decision of the Arbiter?
The Arbiter has no sanction to impose any penalty on the parties to the PPP Agreement for non-compliance with his decision under the Greater London Authority Act 1999.
However, where the Arbiter's determination takes effect as a term of the PPP Agreement (see above) it is enforced in the same manner as any other provision of the agreement. The matter must initially be dealt with under the Dispute Resolution procedures contained in the PPP agreements which can result in the dispute being referred to Adjudicator and ultimately the Courts.