The construction industry is complex, and its effectiveness directly impacts profitability. The performance of a construction project is measured by its ability to achieve completion within predefined time and budget constraints while maintaining safety and quality standards. Therefore, the overall goal of this study is to evaluate the factors influencing the time and cost performance of small hydropower projects undertaken by the private sector in Nepal. Additionally, it aims to analyze the impact of time and cost overruns and propose strategies to mitigate such overruns effectively. This study employed a mixed-methods research approach to explore the variability in project cost and time, significant factors influencing project time and cost, and the impact of changes in cost and time on the financial indicators of small hydropower projects. A questionnaire was developed based on insights from the literature review and distributed to clients, consultants, and contractors. After collecting primary and secondary data, including questionnaires and selected project financial data, a systematic analysis was conducted. The Likert scale was employed to rank factors, permitting respondents to express their agreement or disagreement, quantifying their perceptions on a scale from one to five. Those responses have been converted into Relative importance Indices (RII) for every aspect. Kendall's coefficient of concordance was applied to evaluate the association among clients, consultants, and contractors. This non-parametric measure of relationship determines the degree of association amongst multiple units of rankings. The financial parameters of the projects were evaluated using information on project costs gathered from respective project offices. Financial indicators which include internal rate of return (IRR), net present value (NPV), benefit-cost Ratio (B/C ratio), and return on equity (RoE) had been calculated using suitable formulas. The study examines the factors of time and cost overruns are identified, including client- related factors, contractor issues, consultant challenges, and external factors such as social issues and geological conditions. Financial implications of overruns are evaluated through case studies, highlighting diminished financial indicators. Remedial measures are proposed to improve performance emphasizing clear communication, competent project management, comprehensive planning, realistic scheduling, advanced cost estimation, contractor prequalification, efficient procurement, financial planning, minimizing design changes, and fostering positive community engagement. Recommendations include viii addressing design issues, ensuring timely payments, managing labor shortages, and fostering positive community engagement to prevent unfeasible demand of local. Common time management practices and areas for improvement are identified, alongside disparities in cost management practices, indicating the need for integrated approaches and the adoption of sophisticated cost control methods. Proposed measures include establishing linked cost schedules, appointing dedicated cost engineers, and implementing software for cost management to enhance project efficiency and financial outcomes.

Keywords

Small Hydropower Project, Time Overrun, Cost Overrun, Financial Indicator, Remedial Measure.

Back to list