Impact of Covid-19 on Construction Industry of Nepal

Abstract

The paper aims to examine the impact of COVID-19 on the construction industry of Nepal. This research is based on primary data, and the nature of the data is qualitative. The sources of empirical data have been collected with the help of unstructured interviews with nine professional contractors who have been directly involved in the construction sectors for a long time. This study used a thematic analysis to examine the responses provided by participants in the research field. The major three themes and 12 sub-themes were generated from the study to find the impact of COVID-19 on the construction industry in Nepal. The study finds the three-level of impacts—financial, operational, and institutional on construction sectors. The government budget reduction, the deteriorating financial situation of the contractors, late payment, and over cost runs of the projects are the financial impact. Likewise, the operational level impact is related to delay in project completion, supply chain problems, difficulty in workforce management, and maintaining the health and safety of the workforce. The study finds no adequate support and special packages from the government, including professional associations. The government and regulatory authority should support the construction industry to build efficient, competent, and resourceful sectors. Once the issues and expectations of constructional professionals are addressed, that ultimately helps to enhance the construction industry’s performance. Finally, the construction professionals, the industry, and the government will be benefited.