THESIS ABSTRACT

Abstract

Construction projects play a pivotal role in the development of a country's infrastructure and economic growth. Dispute is unresolved claim and dispute is also known as any contract question or controversy that must be settled beyond the jobsite management. Disputes always cause the increase in cost and time of project. The objective of this study was to identify the causes of dispute, its effects in Selected Electricity Generation and Transmission Project in Nepal, and suggest the possible remedial measures to reduce disputes. The recently constructed and under construction hydropower Generation and Transmission Projects were selected as the study area. The methodology of the study was based on the review of the literatures available in different sources on the relevant topic of study. Questionnaire survey was conducted among the construction partners in the selected projects to find out the objectives of the study. After data collection analysis of data was done. Statistical Package for the Social Sciences (SPSS) was used for analysis of collected data to generate appropriate interpretation. Relative Importance index (RII) analysis was used to analyze the data. The reliability of data has been tested by using Cronbach's alpha test. The findings of the study revealed that the disputes are mostly related to delayed possession of site, ambiguities in requirement/changed order before finalization of rate and price, resistant to deal with genuine claim of contractor, delay in decision making in variation order, claim, EoT and technical matters, extremely low bid and unforeseen site condition. It is seen that most of the significant cause of disputes are related to the group of Employer related (implementation related) factors. Then it comes to the Employer related management related factor, Consultant related factors, Employer related contract document related factor, Contractor related factor and other related factors. Most significant factors among all the groups are exceptionally low bid and delay in possession of site. VI The findings show that the most significant effects of dispute in construction are the cost overrun, time overrun, cash flow problems to the contractor, frequent stoppage of work, loss of productivity/efficiency and delayed revenue generation. In this study, it is seen that the proactive strategies have a higher significance than reactive strategies in minimizing the disputes in Generation and Transmission projects. The most significant minimization measures are inclusion of contract clauses related to extension of time, make payments in time, adopt balanced risk allocation model in procurement, have strict provisions against low bidding and do a proper site investigation before bidding. This study recommends to have proper control mechanisms against low bidding, proper land acquisition, site investigation and detailed design before bidding. In overall, this study recommends that special attention have to be paid towards the preparation of good tender document to avoid the disputes in construction of Electricity Generation and Transmission projects in Nepal.

Keywords

Construction projects play a pivotal role in the development of a country's infrastructure and economic growth. Dispute is unresolved claim and dispute is also known as any contract question or controversy that must be settled beyond the jobsite management. Disputes always cause the increase in cost and time of project. The objective of this study was to identify the causes of dispute, its effects in Selected Electricity Generation and Transmission Project in Nepal, and suggest the possible remedial measures to reduce disputes. The recently constructed and under construction hydropower Generation and Transmission Projects were selected as the study area. The methodology of the study was based on the review of the literatures available in different sources on the relevant topic of study. Questionnaire survey was conducted among the construction partners in the selected projects to find out the objectives of the study. After data collection analysis of data was done. Statistical Package for the Social Sciences (SPSS) was used for analysis of collected data to generate appropriate interpretation. Relative Importance index (RII) analysis was used to analyze the data. The reliability of data has been tested by using Cronbach's alpha test. The findings of the study revealed that the disputes are mostly related to delayed possession of site, ambiguities in requirement/changed order before finalization of rate and price, resistant to deal with genuine claim of contractor, delay in decision making in variation order, claim, EoT and technical matters, extremely low bid and unforeseen site condition. It is seen that most of the significant cause of disputes are related to the group of Employer related (implementation related) factors. Then it comes to the Employer related management related factor, Consultant related factors, Employer related contract document related factor, Contractor related factor and other related factors. Most significant factors among all the groups are exceptionally low bid and delay in possession of site. VI The findings show that the most significant effects of dispute in construction are the cost overrun, time overrun, cash flow problems to the contractor, frequent stoppage of work, loss of productivity/efficiency and delayed revenue generation. In this study, it is seen that the proactive strategies have a higher significance than reactive strategies in minimizing the disputes in Generation and Transmission projects. The most significant minimization measures are inclusion of contract clauses related to extension of time, make payments in time, adopt balanced risk allocation model in procurement, have strict provisions against low bidding and do a proper site investigation before bidding. This study recommends to have proper control mechanisms against low bidding, proper land acquisition, site investigation and detailed design before bidding. In overall, this study recommends that special attention have to be paid towards the preparation of good tender document to avoid the disputes in construction of Electricity Generation and Transmission projects in Nepal.