Analysis of Causes for Extension of Time in Different Construction Projects of Kathmandu Valley
Student: Yogesh Pudasaini
Supervisor: Er. Chakravarti Kanth
Submitted Date:
October, 2023
Abstract
Extension of Time (EoT) claims due to project delays are a pressing issue in
construction projects of the Kathmandu Valley. EoT claims are common and often lead
to disputes due to a lack of consideration for major causes before project contracts are
initiated. Frequent amendments to the Public Procurement Regulation (PPR) 2007 in
Rule 120 and the recent decision of the Government of Nepal to facilitate deadline
extensions underscores the significant and persistent challenge posed by EoT claims in
the construction industry.
This study identified major causes for EoT, analyzed the relationship between project
costs and EoT, and proposed mitigation measures for major causes for EoT in different
construction projects specifically those managed by DUDBC, DoR, CAAN and
Rastriya Banijya Bank Limited within the Kathmandu Valley by utilizing both
qualitative and quantitative research methods. Insights were gathered from various
stakeholders, including clients, contractors, and consultants via Google Forms on a 5-
point Likert scale questionnaire survey. The Relative Importance Index (RII) ranked
EoT causes based on project parties, project types, and respondents' working positions.
Kendall's tau rank correlation analysis was used to evaluate the level of agreement
among project parties regarding the causes for EoT and to analyze the relationship
between project cost and EoT.
The major EoT causes from overall responses included issues such as inadequate
technical studies during bidding, delays in material delivery, poor project planning,
material shortages, slow site mobilization, and delays in client decision-making. The
causes were also ranked based on project parties, types, and the working position of
respondents.
The analysis revealed varying levels of agreement among project parties on the ranking
of EoT causes. Strong correlations were found between contractors and consultants
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regarding contract-related causes. However, other categories exhibited lower to
moderate levels of agreement, possibly due to differing contractual perspectives.
Correlations between initial project cost and different aspects related to EoT were weak,
indicating that cost alone did not reliably predict EoT. The study provided a
comprehensive set of recommendations obtained from expert interviews, survey and
literature emphasizing their complementary nature and recognizing the absence of one-
size-fits-all solutions. Recommendations included improving contractor engagement,
enhancing material management, ensuring effective project planning, facilitating robust
site mobilization, and promoting clear communication and collaboration. These
measures aimed to reduce EoT and enhance construction project efficiency and
delivery.
Keywords
Extension of time (EoT), Construction Projects, Causes for EoT, Mitigation Measures