Systemic Valuation Challenges and their Impact on Construction Management: A Study from Lumbini Province, Nepal

Abstract

This study investigates systemic challenges facing property valuation in Lumbini Province, Nepal, and examines how valuation practices affect construction management outcomes. A mixed-methods approach was employed with 99 respondents across five stakeholder groups. Quantitative data were analyzed using descriptive statistics and Relative Importance Index (RII). Qualitative data from four key informant interviews were analyzed thematically. The most significant challenges are: lack of reliable market data (Mean=1.78, RII=0.844), lack of standardized valuation guidelines (Mean=2.00, RII=0.800), and limited training of valuers (Mean=2.17, RII=0.766). These represent an interconnected "information crisis, regulatory crisis, and capacity crisis." Valuation practices exert the strongest influence on construction financing (Mean=1.78, Rank 1) and land acquisition (Mean=2.00, Rank 2). Inaccuracies and valuer-bank disputes cascade into project delays, cost overruns, and reputational damage. This is the first empirical study to systematically identify and rank valuation challenges in Nepal's emerging property market and quantify their impact on construction management outcomes.