Contractors’ Claims in an EPC and Turnkey Contract: Lessons Learned from a Hydropower Project
Publication: Journal of Legal Affairs and Dispute Resolution in Engineering and Construction
Volume 15, Issue 2
Abstract
This study focuses on the contractor’s claims on a hydropower project contracted under an international engineering procurement and construction (EPC) and turnkey contract in Nepal. The contractor faced challenges from the mobilization phase and submitted multiple claims to the employer for time extensions and additional overhead costs. This study identified 80 claims for a time extension and additional overhead costs. Through content analysis, this study grouped these claims under six categories: natural disaster, strike, unforeseen risk, material shortage, payment, and the COVID-19 pandemic. First, the study analyzed the claim type, outcome, and decision criteria of the claims. Next, the analysis presented decisions based on general conditions of contract (GCC) and the particular conditions of contract (PCC) clauses. The study found that the employer granted a time extension to most of the claims under natural disaster under force majeure and rejected most of the claims under the other five groups. Finally, the study presents findings and lessons learned from the case study, including the relevant GCC and PCC clauses used in claims resolution. The findings and lessons learned from this case study could help employers and international EPC contractors who want to build hydropower projects in Nepal.
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Data Availability Statement
All data used during the study are available from the corresponding author by request.
Acknowledgments
The authors acknowledge the assistance of the project’s employees and express special thanks to the contract manager for providing valuable input to this research.
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Published In
Journal of Legal Affairs and Dispute Resolution in Engineering and Construction
Volume 15 • Issue 2 • May 2023
Copyright
© 2022 American Society of Civil Engineers.
History
Received: Jun 30, 2022
Accepted: Oct 28, 2022
Published online: Dec 29, 2022
Published in print: May 1, 2023
Discussion open until: May 29, 2023
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