Prospects of Joint Venture in Local Road Bridge Construction of Nepal
Keywords:Joint ventures, Bridge construction, Regulations, Bidding document, Prospects of JV
Purpose: The trend of forming a Joint Venture (JV) to enter into the bidding procedure is high in local road bridge construction (LRBC) in Nepal. As we know that the construction industry is complex, firms are facing a new type of problem in every next project. In such an unpredictable working environment working jointly with different firms is a challenge. So, this study was carried out to analyze the prospects of JV in LRBC in Nepal.
Design/Methodology/Approach: The study covers the bridges which are built by DoLIDAR under different projects. Various data collection tools were used for the study. Primary data were collected from a questionnaire survey, sample bridges of DoLIDAR, field observations, and focus group discussions. Secondary data were collected from reports, journals of previous studies, and trends of JV formation in international constructions. Strength Weakness Opportunity and Threat (SWOT) analysis based on a questionnaire survey was also carried out.
Findings/Result: It was also found that to fulfill the gap between the documentation and implementation of JV, a policy is required. As the client's intention for provision of JV is the actual requirement of the project, no to change the scope and scale of contractors so, JV must be formed and followed as per the requirement of the project. Joint ventures should make a detailed agreement among themselves clarifying the roles and responsibilities of each partner, usage of the resources, and the implementation of the project. For the proper management of JV, a management committee should be formed which shall manage the working team and resources suitably as per the requirement for the project. The presence of at least one partner from each partner in every meeting should be made mandatory by the client. A separate policy should be formulated focusing on detailed agreement clause, institutional arrangement for better functioning of JV. The database system of active contractors should be maintained by MoPIT which shall be used as a major tool while evaluating as well as awarding contracts.
Originality/Value: The scope of this study is to identify the practice and prospects of JV's in LRBC. It addresses the understanding of clients and contractors about the JV. The study area covers the bridges built by DoLIDAR funded by GoN, SDC, World Bank (WB), Asian Development Bank (ADB), etc. The study includes local bridges built in DRCN roads covering the Himalayan region, mountain region, and Terai region.
The study outcome is significant for the construction stakeholder to overcome the challenges of JV for taking the benefits of JV. The study is significant for policymakers for formulating policies to reduce the problems of JV.
Paper Type: Action Research