Building Without Battles: Policy-backed Strategies for Preventing and Resolving Construction Disputes in Nepal

Author(s)	Mr. Ramesh Kumar Singh, Prof. Dr. Sunil Thakur
Country	Nepal
Abstract	Disputes in construction are a persistent barrier to infrastructure delivery, resulting in cost inflation, project delays, and decreased public trust. In Nepal, contract, risk, and payment disputes frequently bring important investments in roads, energy, housing etc. to a standstill. This paper examines Nepal's disputes in the light of the Public Procurement Act (PPA), Public Procurement Rules (PPR), and Arbitration Act 2055 and contrasts with international best practices. It presents a reform agenda of preventive contracts, technology-enabled transparency, institutional reforms such as Dispute Review Boards (DRBs), and a three-year reform action plan for 2025–2027. The research estimates that these measures have the potential to reduce disputes by up to 50% and save approximately USD 220 million annually-funds which can be utilized to finance vital infrastructure such as roads or hydropower plants or any other infrastructure. With incorporation of prevention, quick resolution, and cultural change, Nepal can transition its construction sector from conflict-ridden to performance-driven.
Keywords	Disputes in construction, Public Procurement Act, Arbitration, ADR, Nepal, FIDIC contracts, Policy reform
Field	Engineering
Published In	Volume 7, Issue 5, September-October 2025
Published On	2025-09-05
DOI	https://doi.org/10.36948/ijfmr.2025.v07i05.54822

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