Practice of Joint Venture in Local Road Bridge Construction in Nepal
Keywords:
Motivating, Partners, Implementation, Liability, BridgesAbstract
The trend of forming 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 a complex industry, firms are facing new type of problem in every next project. In such unpredictable working environment to work jointly with different firms is a challenge. So, this study was carried out to analyze the practice and prospects of JV in LRBC in Nepal. 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 questionnaire survey, sample bridges of DoLIDAR, field observations and focus group discussion. Secondary data were collected from reports, journals of previous studies and trends of JV formation in international constructions.
It was found that contractors having experience of more than 10 years were involved in the construction of bridges. Major motivating factor for forming JV was experience, equipment and turnover required for the project. Most contractors understood that JV as something which is done only to fulfill the bidding requirements, while most of the clients defined JV as increasing capability by being liable jointly and severally. Joint Venturers do not contribute as per the agreement. Authorized partner pay a certain percentage to other partners of JV to get the authority for implementation. It was also found that JV partners do not make any detail agreement regarding the implementation and management of the project. In most cases bridges were constructed by the partner having least percentage share. The result of the sample bridges also concluded that the performance of the JV in which the authority was given to the lowest percentage share was found worse than those of lead partners. The limitation of number of partners’ upto 3 by PPMO and minimum percentage as 25% and lead partner as 40% seems to be beneficial for construction of Local Road Bridges as well as all other construction sectors. Database system of active contractors was felt necessary.
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