Challenges and Prospects of Nepalese Construction Industry



.Low biding system

.Difficult to collect payments

.Industry depends on stable govt.and sound policies

.works are low quality.consumers are suffered.

.No govt. maintainace system at time

works are done .Only at rainy season why.

Nepalese Construction Industry contributed around 10 to 11 percentages to GDP and it uses around 35 percent of government budget. It is estimated that this sector is creating employment opportunities to about one million people so it generate employment next to agricultural sector in the country. Similarly about 60 percentages of the nation’s development budget is spent through the use of contractors. (Federation of Contractors Association of Nepal).

Nepal Constructions Industry is fast growing service industry in Nepal. Sound Political system and policies helps to create good environment to grow. Constructions equipment and materials market have grown by double after the great earthquake of 2015

In the last two decade, there has been considerable progress in the construction industry. During the period, the Nepalese contractors have been able to develop their management skill, improve working capacity, financial and technical capabilities, and acquire suitable construction equipments.

The leading brand constructions equipments are easily aviable to purchase and to rent  like: JCB, Komatsu, Case, Caterpillar and Tata construction deal with equipment like excavators, loaders, rollers, backhoe loaders, wheel loaders, etc. Likewise, Doosan, Hyundai, Kawasaki, Mahindra and Ashoka also have introduced various construction equipments. The major chunk client for equipment are contractors, while real estate developers, hydropower and mining projects, government departments like the department for road, department of irrigation, brick industrialist etc .


Used Komatsu Dump Truck Dump

Used Komatsu Dump Truck Dump

, challenges face by Nepalese Construction industry are : lack of standard pre-qualification criteria under the new Procurement Act, absence of a balanced and standard bidding document, unclear government Rules and Regulations, lack of construction equipment and workshop, Approval of the Lowest Bid, Taxation System, Delay in Payment, Price Change, Brain Drain, Unavailability of Construction Materials etc. There is relationship between development of construction industry and economic development of a country. Being a developing country, Nepal offers promising employment opportunities for the contractors in Roads and Airports, Irrigation and Hydropower, Real State and Housing and Public Private Partnership in infrastructure development. More importantly, if there is a stable government and it introduces development plans and policies, not only this sector but the whole nation will stand to benefit. Government should also focus on attracting foreign direct investment in the sector. On the other hand, the Nepalese construction industry, which is still regarded as in infant stage,

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