TIME OVERRUN AND ITS IMPACT ON COST OF CONSTRUCTION OF SMALL HYDROPOWER PROJECTS IN NEPAL

Authors

  • Suman Thapa Chairperson, Epicenter Engineering Solution, Kathmandu, Nepal
  • Anjay Kumar Mishra Associate Professor, Madan Bhandari Memorial College, Kathmandu, Nepal https://orcid.org/0000-0003-2803-4918

DOI:

https://doi.org/10.29121/granthaalayah.v11.i4.2023.5110

Keywords:

Cost Overrun, Direct Cost, Indirect Cost, Relative Importance Index, Time Overrun

Abstract [English]

Hydropower is one of the main sources of energy that can be produced as green energy highlights the timely complementation of construction projects. The study is focused to assess the causes of time overrun and its impact on the cost of construction of small hydropower projects in Nepal. The study is based on pragmatic philosophy using case study and survey along with document analysis using correlation and financial decision tools. The result of the study found that all sample projects were facing time overrun. Only 30 % of the cost was due to time increment. Along with time overrun direct cost was negatively related and the indirect cost was positively related, the direct cost was more significant than the indirect cost of the hydropower project resulting in the total cost being negatively related to time increment. Profitability was decreased due to time factors though it was positive till other factors were not impacting. The research concluded that social issues and land problems were the main cause of time overrun which was not properly addressed at the time of planning. Time overrun had become the norm rather than the exception on projects. Time was a partial factor of cost overrun causing it to reduce in its profitability. Besides time, another factor which was causing the cost overrun is to be identified and control for cost overrun. The developer should focus on reducing the direct cost using advance purchase agreement as of schedule and specific care should be taken for social demand. Methods of time allocation of contract should be estimated based on activities using theory of constraints for assuring timely completion and profitability of hydropower projects.

Downloads

Download data is not yet available.

References

Al-Najjar, J. M. (2008). Factors Influencing Time and Cost Overruns on Construction Projects in the Gaza Strip, M Sc The Islamic University of Gaza.

Baldwin, A., & Bordoli, D. (2014). A Handbook for Construction Planning and Scheduling, Wiley Blackwell, United Kingdom. DOI: https://doi.org/10.1002/9781118838167

Chiluwal, K. and Mishra, A. K. (2017). Construction Practice of Small Hydropower Projects in Nepal. International Journal of Creative Research Thoughts, 5(4), 1417-1433.

Chiluwal, K. and Mishra, A. K. (2018). Factors Affecting Performance of Small HydropowerConstruction Projects. Nepal Journal of Emerging Technologies and Innovative Research, 5(6), 262-271.

Chilwal K. and Mishra A. K. (2018). Impact of Performance on profitability of small hydropowerprojects in Nepal. International Journal of Current Research, 10(1), 63918-63925.

Dana, D. (2011). Assessing the Csssost of Conflict in Organization. ADR Commercial Law Journal.

DoED, (2013). Operating Projects. [Online] Kathmandu, Nepal: Department of Electricity Development (DoED).

Jha, R. (2010). Total Run of River type Hydropower Potential of Nepal, Hydro Nepal. https://doi.org/10.3126/hn.v7 i0.4226.

Kaini, S., Sapkota, R., and Mishra, A. K. (2021). Prioritization of Storage Hydropower Projects underStudy in Nepal. J Adv Res Geo Sci Rem Sens, 8(1&2), 1-15. https://doi.org/10.24321/2455.3190.202101. DOI: https://doi.org/10.24321/2455.3190.202101

Kaming, P.F., Olomolaiye, P.O., Holt, G.D., and Harris, F.C. (1996). Factors Influencing Construction Time and Cost Overrun on High Rise Projects in Indonesia. Construction Management and Economic. https://doi.org/10.1080/014461997373132. DOI: https://doi.org/10.1080/014461997373132

Karki, S. K. (2001). Managing Time in Major Hydropower Projects of Nepal. M Sc. Nepal Engineering College - CPS, Pokhara University.

Koushka, P.A., Al-Rashid, K., and Kartam, N. (2004). Delay and Cost Increase in the Cohstruciton of Provate Residential Projects in Kuwait. Construction Management and Economic. https://doi.org/10.1080/0144619042000326710. DOI: https://doi.org/10.1080/0144619042000326710

Mishra, A. K., Sudarsan, J. S., and Nithiyanantham, S. (2021). Assessment of Time-Cost Model of Public Health Buildings in Nepal. Asian Journal of CivilEngineering, 22(1), 13-22. https://doi.org/10.1007/s42107-020-00294-4. DOI: https://doi.org/10.1007/s42107-020-00294-4

Mishra, A. K., Yadav, P., & Aithal, P. S. (2021). Time and Cost Performance Status of SiktaIrrigation Contract. International Journal of Management, Technology and Social Sciences (IJMTS), 6(1), 286-305. https://doi.org/10.47992/IJMTS.2581.6012.0145. DOI: https://doi.org/10.47992/IJMTS.2581.6012.0145

Mishra, A. K., and Aithal, P. S. (2020). Financial Impact Assessment of Time Overrun:A Case of Second Small Towns Water Supply And Sanitation Sector Project,Nepal. International Journal of Applied Engineering and ManagementLetters (IJAEML), 4(2), 159-173. http://doi.org/10.5281/zenodo.4074715.

Mishra, A. K., and Aithal, P. S. (2021). Foreign Aid Contribution for the Developmentof Nepal. International Journal of Management, Technology, and SocialSciences. Technology Publishing, and Social Sciences (IJMTS), 6(1), 162-169. https://doi.org/10.5281/zenodo.470864 . DOI: https://doi.org/10.47992/IJMTS.2581.6012.0136

Mishra, A. K., and Singh, N. K. (2018). A Review on Time and Cost Issues ofInfrastructure Projects. Journal of Advanced Research Construction andUrban Architecture, 3(1-2), 32-46. https://doi.org/10.24321/2456.9925.201807. DOI: https://doi.org/10.24321/2456.9925.201807

Mishra, A. K., & Moktan, K. K. (2019). Identification of Constraints in Project Schedule Management. International Journal of Research - Granthaalayah, 7(2), 18-35. https://doi.org/10.29121/granthaalayah.v7.i2.2019.990. DOI: https://doi.org/10.29121/granthaalayah.v7.i2.2019.990

NEA (2020). 'Fiscal Year 2019/20'. Annual Review Report. 11 June 2021.

NHA (2006). 'National Hydropower Association'. [Accessed on 16 June 2020].

Nepal Electricity Authority, (2012). A Year in Review : Fiscal Year 2011/12. Kathmandu : NEA.

Olawale, Y. A. (2010). Cost and Time Control Practice of Construction Projects in the UK : The Pursuit of Effective Management Control. Phd. University of the West of England.

Surendra, K., Mishra, A. K., Rajesh Sapkota & Aithal, P. S. (2021). Strategy for Prioritization of Storage Hydropower Projects - A Case from Nepal. InternationalJournal of Management, Technology, and Social Sciences (IJMTS), 6(2), 28-46. http://doi.org/10.5281/zenodo.5210936. DOI: https://doi.org/10.47992/IJMTS.2581.6012.0151

Downloads

Published

2023-05-01

How to Cite

Thapa, S., & Mishra, A. K. (2023). TIME OVERRUN AND ITS IMPACT ON COST OF CONSTRUCTION OF SMALL HYDROPOWER PROJECTS IN NEPAL. International Journal of Research -GRANTHAALAYAH, 11(4), 1–12. https://doi.org/10.29121/granthaalayah.v11.i4.2023.5110