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THESIS ABSTRACT

Analysis of Causes for Extension of Time in Different Construction Projects of Kathmandu Valley

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 viii 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