A Study on Causes and Impacts of Disputes on
Selected Road Construction Contracts under
Department of Roads, Nepal
Student: Anju Dhakal
Supervisor: Er. Gyanendra Prasad Kayastha
Submitted Date:
September, 2024
Abstract
Most construction projects are prone to disputes, which can have several negative
impacts. The goal of the research was to categorize various kinds of disputes of road
projects into severity ranges and determine their underlying reasons. This study also
aimed to analyze the impacts of these disputes on road contracts, as well as to explore
ways to minimize these disputes.
For this research, both primary and secondary data were gathered and analyzed.
Questionnaires were prepared and distributed to 112 respondents of which only
82.14% responses were received. The responses were analyzed to identify the major
causes of disputes in road projects, analyze their impacts on the project, and suggest
possible measures for dispute reduction in future road contracts. Further, Spearman's
rank correlation was used to correlate the perceptions of the project stakeholders
(employer, consultant and contractor).
According to the study, the primary reasons for disputes in the selected road projects
include problems with land acquisition, clearing forests, resettlement, the mishandling
of contract provisions and, variations in the cost of labor, supplies, and equipment.
Prominent impacts due to disputes in road contracts were found to be delay in project
completion time leading to increase in project cost, emergence of un-amicable
relationships among direct stakeholders including the employer or client, consultant and
contractor and deterioration of their public images and failure of project.
Creating a project environment that is trustworthy, offering timely issue assurance,
approving and delivering drawings, and meeting other essential requirements are the
most important reduction strategies to lower claims and disputes in road contracts.
Keywords
Construction Road Projects, Contract, Disputes, Causes, Impacts,
Minimization Measures.