Dispute Resolution Practice of Project Management in Nepal

Zero dispute construction industry has not been achieved yet. The study was focused to assess disputes resolution practices in International Competitive Bidding (ICB) road contract through Alternative Disputes Resolution (ADR). Based on area sampling eight ADB funded projects were selected for case study. Intensive reviews of available literatures on causes of disputes in the construction industries were done. One set questionnaire survey was carried out among the stakeholders involved in the ICB road projects to assess the causes of disputes. Semi-structure interview were conducted with the stakeholders. Out of 8 projects, dispute related to only one project has been settled in 8 months. Remaining 7 projects have not been settled till 1st November 2015. Total time lost during the process would be around 20 years and 3 months till date. Average time lost 2 years and 10 months for each projects. The disputes, which have not been solved, could not be assessed. The total amount spent on ADR only, for seven projects was 20 lacks and 50 thousand, on an average the cost for a single project was 3 lacks and 7 thousand. However, the total cost incurred could not be estimated until the disputes have been completely settled. These cost included only arbitrator’s fee other expenses such as opportunity losses are not included. Time overrun and cost overrun are the major problem that arises due to disputes. Negotiation is the most applied ADR to resolve the disputes followed by Adjudication and mediation. Arbitration is used as the fourth ADR method due to its high legal Value inspires of high time and cost consumption. Alternative Dispute Resolution procedure for ICB contracts is applicable, simple and satisfied to all the parties