Cause of Time and Cost Overruns in the Construction Project in Nepal

Volume 5, Issue 4, Page No 192-195, 2020

Author’s Name: Bishnu Prasad Khanal^a), Sateesh Kumar Ojha

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Lincoln University College, Mayang Plaza, Taman Mayang Jaya, Petaling Jaya, 47301, Malaysia

^a)Author to whom correspondence should be addressed. E-mail: bpkhanal123@gmail.com

Adv. Sci. Technol. Eng. Syst. J. 5(4), 192-195 (2020); DOI: 10.25046/aj050423

Keywords: Construction, Contractor, Bid, Nepal, Time Overrun, Cost Overrun

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Abstract

There are many works in construction in Nepal. To build the country, there must be different buildings, roads, bridges, etc. with rapid flights. But here it seems to be slowly delayed for various reasons. Many people have studied in this regard. But no one seems to have thought about reducing it. Therefore, I have prepared this article by studying the main reasons for construction delay and cost overruns and looking at how this cause can be reduced. This will enhance the delivery of project within the set time frame. Based on the literature available and their study the deviation of time taken, and cost incurred by the projects than estimated were examined. Construction projects such as road transport and highways, buildings, Hydropower were found to deviate more. Commitments to finish the projects in time was found as primary reason caused by easily postponing practices by the authority on the request of concerned contractors, was the reason for time overrun whereas capital cost rise due to price escalation was the major reason for cost overrun. This means exceptional provisions of laws were seen followed easily, actually they were supposed to use in extraordinary situation. Similarly planned schedules were found distorted from the beginning due to lack of seriousness to start timely due to budgetary provisions and adjustments.

Received: 14 January 2020, Accepted: 27 June 2020, Published Online: 22 July 2020

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