Unveiling Status, Perspectives and Challenges in Maintenance Construction Constracts: A Study in Nepal
Student: Bigyan Pokhrel
Supervisor: Er. Subhash Kumar Bhattarai
Submitted Date:
April, 2024
Abstract
Embarking on a journey to unravel the intricacies of maintenance construction contracts in
Nepal, this study delves into the very essence that governs project success: the conditions of
contract. In a landscape where maintenance projects hold a significant stake in the country's
construction domain, understanding the nuances of these contracts is paramount.
These contracts serve as the blueprint guiding the collaboration between purchasers and
contractors, delineating the scope, obligations, and limitations essential for seamless project
execution. Yet, amidst their pivotal role, challenges lurk within the folds of these contracts,
often stemming from inconsistencies or inadequacies in their conditions.
The study population comprises published bids available on the electronic government portal
of the PPMO, totaling approximately 25,000 per year. This population encompasses both
maintenance and new works contracts, as the PPMO does not differentiate between the two
and classifies all contracts under "procurement for works." To ensure representation across
major types of maintenance construction contracts, a purposive sampling approach was
employed, selecting five published bids. Additionally, 30 maintenance contracts were chosen
randomly for inclusion in the sample.
The study sets out to dissect these conditions with precision, focusing on their impact on project
dynamics and stakeholder experiences. Through cutting-edge methodologies such as PLS-
SEM and Delphi techniques, we aim to unearth insights that illuminate the path toward
enhanced contract management.
In Nepal's maintenance construction sector, understanding the dynamics of contract
management is crucial for ensuring project success. Through a comprehensive analysis of
existing conditions, stakeholder perspectives, and Delphi technique-based insights, this study
sheds light on challenges, solutions, and stakeholder concerns. The research unveils
inconsistencies in contract conditions, ranging from financial terms to regulatory compliance,
leading to confusion, disputes, and operational inefficiencies. Stakeholders, particularly clients
and beneficiaries, prioritize effective contract management to safeguard project outcomes.
Recommendations include standardizing contract conditions, policy reforms, and stakeholder
capacity building. Addressing these issues is imperative for enhancing contract clarity,
consistency, and compliance in Nepal's maintenance construction contracts.
Keywords
Maintenance construction contracts, Conditions of contract, Project success,
Stakeholder experiences, Contract management