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Repair Windows errors before they cause bigger problemsFix Now →Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →Nicholas Pandey, identified in recent reports as president of the Federation of Contractors’ Associations of Nepal (FCAN), says contractors cannot be held solely responsible for delayed infrastructure. His argument is conditional: when sites, permits, designs, payments and workable prices are in place, construction entrepreneurs can complete quality projects on schedule; when those conditions are missing, even capable firms face delays. Government leaders have offered administrative facilitation, but they are also demanding quality, clean governance and compliance with contracts.
Why Nepal’s projects fall behind schedule
Construction accounts for an estimated 60–70% of the state’s development-budget spending, according to Pandey as reported by Nepal News. Delays therefore affect a large share of public investment, not just individual contracts. Pandey’s case is that many delays begin before, or outside, a contractor’s control.
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Sites and rights-of-way are not ready
Tenders can be awarded before land acquisition is complete or before the project owner has handed over an accessible site. Trees, utility poles and other structures may still need removal or relocation. A contractor then carries equipment, staff and financing costs while waiting for a legal work front.
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Forest clearances, environmental permissions, technical specifications and other approvals can involve several agencies. Missing or changing documents prevent uninterrupted work and make the original completion date unrealistic.
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Procurement rewards the lowest initial price
Pandey told Kantipur on April 3, 2026, that “The procurement process is lengthy. It is necessary to make it faster and shorter.” He also argues that a low-bid system can leave contracts underpriced when material and fuel costs rise, creating disputes and stalled work rather than genuine savings.
Payments and inflation disrupt cash flow
Delayed interim bills can stop a project even when work has been completed and measured. Pandey told Nepal News on July 10, 2026: “Due to inflation, construction entrepreneurs are in a position where they cannot execute work on time.” He has called for price adjustment to apply to small contracts as well as large ones.
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The reforms Pandey is seeking
- Construction-friendly rules: revise laws and regulations that create avoidable procedural delays.
- Shorter procurement: reduce the time between project identification, tendering and award while retaining competition and safeguards.
- Ready-to-build tender packages: complete land acquisition, access, tree clearance, utility relocation, permits and technical documents before inviting bids.
- Predictable price adjustment: provide a contract mechanism that reflects major changes in fuel, bitumen and other inputs, including on small contracts.
- Digital administration: use online bidding, online payments and contactless bill verification and approval to reduce face-to-face dealings and opportunities for corruption.
- Permanent public-private problem solving: maintain a regular channel through which contractors and agencies can resolve operational blockages instead of escalating each issue through multiple offices.
What the government has offered—and what it still requires
Prime Minister Balendra Shah was reported as promising action on site-access and forest-permit obstacles, consideration of deadline extensions and fewer ministry-to-ministry journeys for routine operational matters. Clickmandu reported an agreement in principle to extend deadlines for about 2,000 delayed small and large projects.
That facilitation is not a blanket waiver. Shah also demanded good governance, high-quality standards, zero tolerance for corruption, qualified engineers at sites and fulfillment of contractual obligations. In a meeting described by Nepal News, he said: “Anyone can state the problems; bring the solutions along as well.” The policy implication is shared responsibility: agencies must provide the conditions to work, while contractors must deliver the contracted scope and standard.
How severe are the sector’s financial pressures?
Lagani News reported the Federation of Contractors’ Association of Nepal’s estimate that about 32,000 contractors were under severe economic pressure. The same report said only 27% of the allocated capital budget had been spent at the time of its May 5, 2026, publication. Those are reported sector figures, not independently audited estimates in the report.
Lagani also attributed sharp input-cost changes to Pandey and FCAN: diesel was described as Rs 139 per liter on February 15 and Rs 225 per kg later, while bitumen rose from Rs 75 to Rs 155 per kg. The diesel figures use inconsistent units in the report, so they should be treated as an attributed illustration of price volatility rather than a directly comparable price series.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Removing red tape does not settle the quality question
Public complaints about slow or poor-quality work remain relevant. Kantipur reported that Pandey’s federation planned a technical branch and engineering assistance for smaller entrepreneurs, acknowledging that capacity must improve alongside administrative reform.
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Some contracts were reported as roughly 90% complete when they expired. Other contracts had lasted 12–14 years and could not secure renewed bank guarantees or insurance. These cases show why extensions need objective tests: documented causes, remaining quantities, updated costs, financing and a credible completion plan. A contractor should not receive an open-ended extension for work it failed to resource, but an owner should not terminate a nearly finished project when unresolved permits, payment arrears or extraordinary price movements caused the delay.
A practical division of responsibility
| Delivery condition | Government or project owner | Construction entrepreneur |
|---|---|---|
| Site readiness | Acquire land; provide access; clear trees and relocate utilities before handover. | Mobilize equipment and labour after a lawful, workable site is provided. |
| Approvals and design | Secure permits and issue complete, coordinated specifications. | Build to the approved design and promptly identify technical conflicts. |
| Price and payment | Certify bills promptly and apply the contract’s price-adjustment rules. | Maintain records, use funds for the project and meet cash-flow obligations to suppliers and workers. |
| Quality and integrity | Inspect fairly, staff supervision and enforce the contract consistently. | Provide qualified engineers, use compliant materials and reject corruption. |
| Delay decisions | Assess evidence and grant, revise or terminate contracts under published rules. | Submit recovery schedules and complete the remaining work within the approved remedy. |
What would show that reform is working?
- Every tender documents a ready site, land status, permits, utility plan and complete technical specifications.
- Bid timelines and evaluation steps are shortened without removing audit trails or competition.
- Online bidding, payment and contactless bill approval create a timestamped record from submission to release of funds.
- Price-adjustment decisions use a transparent formula and cover eligible smaller contracts.
- Each delayed project receives a cause assessment separating owner-caused, force-majeure and contractor-caused delay.
- Extensions, recovery plans and terminations are tied to measurable milestones, engineering capacity and financial guarantees.
Pandey’s central claim is therefore narrower than “contractors are never at fault.” It is that Nepal cannot obtain timely, quality infrastructure while tendering projects before they are ready, withholding valid payments, leaving approvals unresolved and fixing prices that inflation has made unworkable. Clearing those bottlenecks, while enforcing engineering, anti-corruption and contractual standards, offers a more credible route to on-time delivery than assigning all delay to one side.
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