THESIS ABSTRACT

A Study on Causes and Impacts of Disputes on Selected Road Construction Contracts under Department of Roads, Nepal

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.