Causes of Dispute in International Competitive Bidding Road Contracts Funded by Asian Development Bank in Nepal

Abstract

Asian Development Bank (ADB) has been working as the first International organization for road development like any other projects; ADB Projects are not able to avoid disputes. The study was focused to assess causes of dispute in International Competitive Bidding (ICB) road contract. 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. The findings of the study revealed that disputes in the construction contracts are caused mainly due to Change of material, Source, Inadequate design and site information, Commencement and Delay information, Unforeseen physical/ Site condition resulting to variation, Strikes, Bandh, Riot (disturbance) or Disorder, Delay in decision making and settlement of dispute, Possession of site and Access to site, Unusual weather condition and Inflation, Unavailability of fuel and Construction material. There is a need to revise the construction project contracts and standardize it to include the proposed ADR for disputes resolution through establishing an official committee, which consists of all related sectors working in public construction projects, contracting union, engineering syndicate, and specialist engineering consulting firms