Issues of Contract Management in Urban Road Construction Project, "A Case Study of Lalitpur
Metropolitan City"
Student: Sita Khadka
Supervisor: Assoc. Prof. Hari Mohan Shrestha
Submitted Date:
February, 2023
Abstract
Construction projects play a pivotal role in the development of a country's
infrastructure and economic growth. Thus, every construction project is unique in their own
field. The timely completion of any construction projects with proper management helps to
economic growth of country. The objective of the research is to reflect the existing issues in
Urban Road Construction Projects with comparing projects documents and its actual
practices in Lalitpur Metropolitan city, to study the factors affecting and to find out solution
to overcome the issues in contract management practices in urban road projects in Lalitpur
Metropolitan City.
The checklists were prepared and data regarding the contract management were obtained
from the project stakeholders (Public entity, Client, and Consultant) involved in the urban
road construction projects. A structured questionnaire was prepared, and distributed to 74
respondents that comprises of public entity related to this projects, consultants, and
contractors at their own place. All responses were obtained, which is 100% of the total
respondents. The data were collected through questionnaire survey and analyzed using RII,
SPSS, MS Excel, and presented using the graph, table, and pie charts.
From the research, it has been found that there is still challenges in contract management
practice adopted in urban road construction projects of Lalitpur Metropolitan city. Existing
issues in contract administration between contract documents and actual practices (referred
and review of official documents as if projects progress reports, consultant’s letter and
minutes of meeting etc.) are not matching. Furthermore, different contract GCC clause 15.1-
Key Personnel and Equipment, Clause 24.1- Arrangement of OSH Gears and Labor Camp,
Clause 26.1- Provide Site Clearance before Contract mobilization by Client ,Clause 34.3-
Execution of Construction works to meet milestones, Clause 35.1-Completion of Project
with Planned Scheduled etc. are not complying with contract document.
It is found that, the factors affecting in Contract Management Practice are political pressure
(Local), force majeure (COVID-19), lack of cooperation with stakeholders and line
agencies, lack of proper communication, monitoring, timely meetings, and slow decisions
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making. Similarly, it is also found that lack of qualifications, knowledge, skills, and
experience of the contract management team.
The effective solution to overcome the existing issues in contract management, suggestions
have been recommended as LMC must selected the sites having properly installed different
utilities and further services must not be installed during construction period. Local
representative / political interference at construction site must be managed by LMC office
on time. Proper monitoring, efficient decision making mechanism among the project team,
regular progress meeting among the public entity, consultant and contractor are required to
improve the contract management process of projects. Furthermore, LMC must give the
clear site before execution of any project and must require regular co-ordination between
different stakeholders/line agencies. Contractor shall not replace their key personnel during
the construction period, also, use “issues log,” and maintain safety environment at site for
effective managements of projects.
Keywords
Contract management, existing issues, Factor affecting effective contract
management, probable solution, questionnaires, Relative Important index (RII),
stakeholders, line agencies and public entity.