Contractors' Claims in an EPC and Turnkey Contract: Lessons Learned from a Hydropower Project

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. © 2022 American Society of Civil Engineers.

Construction Cost and Schedule Impacts Due to COVID-19

Construction companies are facing unprecedented challenges in terms of coping with the new circumstances as well as understanding their legal and contractual impacts. Because the COVID-19 pandemic affected all businesses across the globe, identifying and analyzing the impact of COVID-19 on construction projects in terms of material supply disruption, labor shortage, construction delay, and disruption in cash flow is vital. The purpose of this study is to enhance construction companies' ability to better tackle such situations in the future by identifying and addressing the impact of COVID-19 on the material supply disruptions and construction schedule. This research used a quantitative methodology using an online questionnaire as the instrument to collect data. The study analyzed responses from 32 construction company executive members across the United States. The survey collected cost and schedule impact due to material supply disruption in building construction divisions. The analysis shows that COVID-19 pandemic impacted project schedule, increased cost, and disrupted the supply chain of building materials. The findings can provide a better understanding and solution to reduce the pandemic's impact on the construction industry in the future and understand the legal implications that can arise due to this pandemic disruption. (C) 2022 American Society of Civil Engineers.