Construction Arbitration and Disputes
We have a focused practice in construction arbitration and disputes, with lawyers who work in this space regularly rather than as an occasional extension of general litigation. We have advised on large and complex engineering and construction projects in Nepal through litigation, arbitration, adjudication, dispute boards and other alternative dispute resolution mechanisms including mediation.
The Legal Framework
Arbitration in Nepal runs primarily through the Arbitration Act, 2055 (1999). It is the dominant mechanism for construction disputes because Section 58 of the Public Procurement Act, 2063 (2007) makes arbitration mandatory for disputes under public procurement contracts where amicable settlement fails, and public infrastructure makes up a large share of the construction sector. Where a foreign investor is a party, Section 40 of FITTA, 2019 separately requires arbitration seated in Nepal and, absent contrary agreement, conducted under the UNCITRAL Arbitration Rules.
Recent amendments to the Arbitration Act introduced a fast-track option and narrowed the grounds for setting aside an award. In practice, a setting-aside application is not a second chance to argue the measurements, quantities and technical specifications a construction dispute is built on. That makes getting the arbitration right the first time far more important.
What We Do
We represent clients across the full range of issues that arise on construction and engineering projects, including:
- Bid protests and procurement disputes
- Wrongful termination and breach of contract
- Breach of warranty, design and construction defects
- Negligence, errors and omissions
- Performance and bank guarantee disputes
- Contractor and subcontractor disputes
- Claims for additional costs, variations and changes
- Delay and disruption claims
- Insurance coverage and claims disputes
- Liquidated damages
Who We Represent
We act for multinational corporations, international and domestic developers, contractors, subcontractors, engineering firms, architects, suppliers, lenders, government and state-owned entities and individual construction professionals. Our experience covers the sectors where these disputes are most common and highest in value, including road, water, energy and renewable projects and commercial property.
