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THESIS ABSTRACT

Impacts of Dispute and Litigation in Construction Projects in Nepal

Impacts of Dispute and Litigation in Construction Projects in Nepal

Student: Pratik Koirala

Supervisor: Prof. Dr. Hari Krishna Shrestha

Submitted Date: February, 2023

Abstract

Many construction projects are being carried out in Nepal with the help of various implementing agencies such as government agencies, public enterprises and private enterprises. Disputes arise in construction projects and solving those disputes properly is a major challenge faced today. The objective of this study is to identify the impacts of dispute and litigation in construction projects in Nepal. The research was carried out in two ways. At first, secondary data were collected from Nepal Council of Arbitration (NEPCA) and High Court, Patan. The cases were studied to determine the facts regarding various research objectives. Secondly, questionnaire survey and Key Informant Interview (KII) were carried out for taking perceptions towards dispute management practices in construction projects of Nepal. The obtained data were carefully analyzed to arrive at the conclusions set forth in this research. The findings of the study revealed that disputes in the construction contracts are usually caused due to inadequate design and site information, commencement and delay information, unforeseen physical/ site condition resulting to variation, strikes, bandh, riot (disturbance) or disorder, delay in decision making and settlement of dispute, possession of site and access to site, unusual weather condition and inflation, unavailability of fuel and construction materials. Time overrun and cost overrun are the major problem that arises due to disputes. Negotiation is the most applied Alternative Dispute Resolution (ADR) method to resolve the disputes followed by adjudication and mediation. Arbitration is used as the fourth ADR method due to its high legal value in spite of high time and cost consumption. Alternative Dispute Resolution procedure for National Competitive Bidding (NCB) contracts is applicable, simple and satisfactory to all the parties involved. Therefore, there is a need to revise the construction project contracts and standardize it to include the proposed ADR for disputes resolution through establishing an official committee, which consists of all related sectors working in public construction projects, contracting union, engineering syndicate, and specialist engineering consultancies.

Keywords

Dispute, alternative dispute resolution, arbitration, litigation, construction