THESIS ABSTRACT

Abstract

Currently, a significant portion of Nepal's population lacks access to reliable energy. This problem arises from a shortage in electricity generation and an underdeveloped grid system. These issues not only negatively affect individuals' daily lives but also harm the country's overall economy. Unfortunately, projects related to power transmission and substations often encounter delays, claims, and disputes. Claims represent a common challenge in construction projects and can lead to work stoppages, cost overruns, project delays, and even project termination. Therefore, it is crucial to comprehend the primary causes of claims and their consequences in order to prevent them. The central focus of this thesis was to assess the primary causes of claims and disputes in high voltage transmission line and substation construction projects in Nepal. The study also aimed to analyze how these claims and disputes impact construction and suggest potential measures to minimize them. To gather data for this study, ten projects (comprising seven high voltage transmission lines and three substations), both under construction and recently completed, were selected. Data collection methods included questionnaire surveys, Key Informant interviews (KII), and the examination of project documents. The initial questionnaire was developed based on a literature review and discussions with KII and engineers from the Nepal Electricity Authority (NEA) to ensure content validity in line with the research objectives. The final questionnaire, customized based on these inputs, was distributed via Google Forms to 120 participants, including contractors, consultants, employers, and engineering experts involved in power transmission and substation projects under scrutiny. A total of 97 responses were collected and analyzed using statistical software such as SPSS and Microsoft Excel. The Relative Importance Index (RII) method was applied to rank the factors responsible for claims, their effects, and potential measures for minimizing them. Based on the RII rankings, the most frequent types of claims were related to delay, extra work, and variations. The top five causes of claims and disputes included exceptionally low bids, awarding contracts to the lowest bidder, interference from stakeholders (local communities, beneficiaries, authorities), inadequate pre-bidding investigations, and poor planning and management by contractors. Contractor-related vi factors were identified as the primary causes of claims and disputes, while project- related factors played a lesser role. The top five effects of claims and disputes in construction were identified as cost overruns, project delays, delays in realizing expected project benefits, cash flow problems for contractors, and additional costs in managerial and administrative tasks. The study revealed that precautionary strategies held greater significance than project management strategies in reducing claims and disputes in construction. The top five recommended minimization measures included conducting proper site investigations before bidding, granting adequate authority at the job site, ensuring clarity in project scopes, establishing expert teams to oversee contractor work, and implementing effective communication measures. The study recommends implementing control mechanisms against low bidding, completing the majority of land acquisitions before commencing work, and conducting thorough site investigations before bidding. Separate funds should be allocated to address hindrances arising from social issues, and Corporate Social Responsibility (CSR) activities should be carried out alongside construction. Speedy forest clearance, timely land acquisition, efficient contract management, and administration are all crucial for avoiding claims and disputes in high voltage transmission line and substation projects in Nepal.

Keywords

Transmission line and substations projects, Claims, Disputes, Causes, Effects, Minimization measures