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Construction & Infrastructure

Last updated 23 September 2026

We advise contractors, developers, and public agencies on infrastructure projects and construction disputes. Adalat Lawyers in Nepal provides Construction & Infrastructure Law services covering contracts, public procurement, EPC, PPP, project finance, banking, foreign investment, disputes, arbitration and litigation.

Adalat Lawyers in Nepal provides comprehensive Construction and Infrastructure Law services in Nepal to construction companies, infrastructure developers, contractors, project sponsors, investors, banks, financial institutions, lenders, developers, consultants, government entities, public bodies and other stakeholders involved in Nepal’s construction and infrastructure sector.

Nepal’s construction and infrastructure sector is governed by a combination of public procurement, construction business, investment, environmental, land, financing, company, taxation, labour, dispute-resolution and sector-specific laws. The Public Procurement Act, 2063, Public Procurement Rules, 2064, and Construction Business Act, 2055 form important parts of the legal framework applicable to public construction and construction businesses.

Adalat Lawyers assists clients throughout the entire construction and infrastructure project lifecycle, from project structuring and tendering to financing, contract negotiation, construction, claims, completion, operation, disputes, arbitration and litigation.

Construction and Infrastructure Legal Services in Nepal

Construction projects in Nepal involve multiple stakeholders and regulatory authorities. A project may require company or project-vehicle structuring, land arrangements, environmental approvals, investment approvals, construction permissions, financing, procurement compliance, contractual arrangements and dispute-management mechanisms.

Adalat Lawyers provides legal support in areas including:

  • Construction contracts and infrastructure agreements
  • Public procurement and government tenders
  • EPC contracts
  • Design and construction contracts
  • Engineering and consultancy agreements
  • Operation and maintenance agreements
  • Project Development Agreements
  • Public-Private Partnership (PPP) projects
  • Build-Operate-Transfer (BOT) structures
  • Build-Own-Operate-Transfer (BOOT) structures
  • Infrastructure project financing
  • Bank and financial institution financing
  • Security documentation and loan agreements
  • Performance guarantees and advance-payment guarantees
  • Contractor and subcontractor agreements
  • Variation orders and extension-of-time claims
  • Delay and disruption claims
  • Payment disputes and certification disputes
  • Construction defects and defective works
  • Termination and suspension of contracts
  • Contractor and employer disputes
  • Land acquisition and land-related issues
  • Environmental and regulatory compliance
  • Foreign investment in infrastructure
  • Joint ventures and consortium arrangements
  • Corporate restructuring and project transactions
  • Construction arbitration
  • Commercial litigation
  • Banking and finance litigation
  • Recovery of construction-related loans
  • Enforcement of contractual and security rights

Construction Law in Nepal

The Construction Business Act, 2055 provides a statutory framework concerning the management, development and operation of construction businesses. The Nepal Law Commission records that the Act addresses public construction works and includes reconstruction and maintenance within the relevant concept of public construction work.

Construction businesses must therefore consider not only commercial contract obligations but also statutory requirements concerning eligibility, technical capacity, construction-business regulation and public works.

Adalat Lawyers advises contractors, developers and project companies on the legal risks arising from construction contracts, procurement documents, project implementation and contractual performance.

Public Procurement and Government Construction Contracts

Government infrastructure projects in Nepal are substantially connected with the Public Procurement Act, 2063 and Public Procurement Rules, 2064.

The Public Procurement Act establishes the legal framework for public procurement, including procurement of construction works, goods, consultancy services and other services. The Act emphasizes transparent, competitive, accountable and economical public procurement.

The Public Procurement Rules provide detailed procedures concerning bidding, qualification, technical and financial capacity, contracts, construction works, supervision, claims and completion.

For construction businesses participating in public procurement, legal review should begin before submitting a bid. Tender conditions can create significant contractual and financial obligations after award.

Adalat Lawyers assists with:

  • Tender document review
  • Bid-related legal issues
  • Prequalification requirements
  • Joint venture and consortium arrangements
  • Bid securities
  • Performance securities
  • Contract review
  • Contract interpretation
  • Employer-contractor obligations
  • Payment and certification disputes
  • Extension-of-time claims
  • Variation claims
  • Delay claims
  • Liquidated damages issues
  • Suspension and termination
  • Completion and defect-liability matters
  • Procurement-related disputes
  • Administrative and judicial remedies

Construction Contracts and Infrastructure Agreements

A properly structured construction contract is central to successful infrastructure development.

Adalat Lawyers provides legal drafting, review and negotiation of construction and infrastructure agreements, including:

EPC Contracts: Legal support for engineering, procurement and construction arrangements, allocation of design responsibility, completion obligations, testing, commissioning, warranties and risk allocation.

Design-Build Contracts: Advice concerning design responsibility, performance standards, construction obligations and project delivery.

Operation and Maintenance Agreements: Drafting and review of long-term operation, maintenance, performance and service obligations.

Subcontracting Agreements: Legal structuring of relationships between principal contractors, subcontractors, suppliers and consultants.

Consultancy Agreements: Agreements involving engineers, architects, project managers, quantity surveyors and other professional consultants.

Supply Agreements: Legal advice on procurement, delivery, quality, warranties, payment, delays and liability.

Construction Claims, Delay and Cost Overruns

Construction projects frequently encounter delays, design changes, unforeseen site conditions, material-price changes, financing difficulties, regulatory delays and payment problems.

Legal assessment of a construction claim generally requires examination of the contract, tender documents, drawings, specifications, correspondence, site records, payment certificates, variation orders, progress reports and applicable law.

Adalat Lawyers represents clients in matters involving:

  • Extension of time
  • Delay and disruption
  • Acceleration
  • Variation and additional works
  • Price adjustment
  • Unpaid invoices
  • Retention money
  • Defects
  • Defective construction
  • Employer interference
  • Contractor default
  • Force majeure
  • Suspension
  • Termination
  • Liquidated damages
  • Performance security
  • Advance-payment guarantees
  • Counterclaims

Our lawyers work to identify the contractual basis of a claim, establish supporting evidence and pursue appropriate contractual, arbitration or litigation remedies.

Infrastructure Project Finance, Banking and Finance Law

Construction and infrastructure projects often require substantial debt and equity financing. Consequently, construction law and banking and finance law are closely connected.

Adalat Lawyers provides legal services to banks, financial institutions, lenders, borrowers, project companies, developers, investors and contractors involved in infrastructure financing.

Our banking and finance-related construction services include:

  • Project finance documentation
  • Infrastructure loan agreements
  • Term loan documentation
  • Working-capital facilities
  • Construction finance
  • Bridge financing
  • Security documentation
  • Mortgage and collateral documentation
  • Corporate guarantees
  • Personal and institutional guarantees
  • Assignment of receivables
  • Assignment of project contracts
  • Escrow arrangements
  • Debt restructuring
  • Loan recovery
  • Enforcement of security
  • Default and acceleration
  • Financing-related disputes
  • Banking litigation
  • Recovery proceedings

Construction Loan and Infrastructure Finance Disputes

A construction project can create disputes between borrowers, developers, contractors and lenders when project completion is delayed or project cash flow becomes insufficient.

Adalat Lawyers represents banks and financial institutions in appropriate legal proceedings relating to:

  • Defaulted construction loans
  • Project-finance disputes
  • Recovery of outstanding loans
  • Enforcement of security
  • Mortgage enforcement
  • Guarantee enforcement
  • Disputes concerning project receivables
  • Contractor-payment disputes affecting loan repayment
  • Insolvency-related recovery issues
  • Negotiated restructuring and settlement

At the same time, Adalat Lawyers represents borrowers and project companies in legally appropriate disputes concerning financing documentation, enforcement actions, contractual interpretation and lender-borrower disputes.

PPP and Infrastructure Investment in Nepal

Nepal’s Public-Private Partnership and Investment Act, 2075 and Public-Private Partnership and Investment Regulations, 2077 provide an important legal framework for private participation and investment in infrastructure projects. Investment Board Nepal publishes these laws as part of its official legal framework.

Investment Board Nepal’s official materials describe PPP structures that can include models such as Build and Transfer (BT), Build-Operate-Transfer (BOT), Build-Own-Operate-Transfer (BOOT), Build-Transfer-and-Operate (BTO), and Lease-Operate-Transfer (LOT).

For eligible large-scale infrastructure projects, legal structuring can involve:

  • Project identification
  • Feasibility and due diligence
  • Investment approval
  • Project development
  • PPP structuring
  • Concession arrangements
  • Project Development Agreements
  • Financing
  • Government approvals
  • Construction
  • Operation
  • Revenue arrangements
  • Risk allocation
  • Dispute resolution
  • Project transfer or termination

Adalat Lawyers assists investors and project sponsors in structuring and negotiating infrastructure projects under Nepal’s applicable investment and PPP framework.

Foreign Investment in Construction and Infrastructure

Foreign investors entering Nepal’s infrastructure sector must consider the applicable foreign-investment regime, sectoral restrictions, approvals, company or industry registration and regulatory requirements.

The Department of Industry’s official investment materials identify infrastructure industries including roads, bridges, tunnels, railways, airports, industrial infrastructure, water supply and distribution, irrigation infrastructure, stadiums, warehouses, telecommunications infrastructure and certain energy and pipeline infrastructure.

The Department of Industry also operates a One Stop Service Center intended to facilitate investment-related services, including industry registration, foreign-investment-related services and assistance concerning infrastructure such as electricity, water and land.

Adalat Lawyers assists foreign investors with:

  • Investment structuring
  • Foreign investment approval
  • Company and industry registration
  • Joint ventures
  • Share subscription and transfer
  • Project companies
  • Regulatory due diligence
  • Land and project documentation
  • Financing arrangements
  • Repatriation-related legal issues
  • Infrastructure contracts
  • Dispute resolution

Land and Construction Projects in Nepal

Land is one of the most important legal components of infrastructure development.

Infrastructure projects may require land acquisition, leasing, easements, access arrangements, right-of-way arrangements and other land-related rights.

Adalat Lawyers advises clients on:

  • Land due diligence
  • Land ownership verification
  • Lease agreements
  • Land acquisition issues
  • Right of way
  • Easements
  • Access rights
  • Project-site agreements
  • Land-related disputes
  • Compensation-related legal issues
  • Construction-site possession
  • Property documentation

Environmental Compliance and Infrastructure Projects

Large infrastructure projects can have significant environmental implications. Environmental approvals and compliance should therefore be addressed at the project-planning stage rather than after construction has commenced.

Depending on the project and applicable requirements, environmental assessment and approval processes may form part of the project-development framework.

Adalat Lawyers provides legal assistance concerning:

  • Environmental due diligence
  • Environmental approval documentation
  • IEE/EIA-related legal matters
  • Environmental compliance
  • Regulatory correspondence
  • Environmental disputes
  • Forest and land-related approvals
  • Compliance during construction
  • Environmental liability

The Department of Industry also states that its One Stop Service Center provides approval of Initial Environmental Examination reports required for establishing industries within its jurisdiction.

Infrastructure Development and Regulatory Approvals

Infrastructure projects can involve multiple government agencies depending on the nature, location and financing structure of the project.

Legal due diligence may therefore involve identifying:

  1. The responsible government authority;
  2. Required licences and approvals;
  3. Land requirements;
  4. Environmental obligations;
  5. Investment approvals;
  6. Construction permissions;
  7. Financing requirements;
  8. Procurement obligations;
  9. Contractual requirements; and
  10. Applicable dispute-resolution mechanisms.

Adalat Lawyers helps clients coordinate the legal aspects of these requirements and identify regulatory risks before they become project disputes.

Construction Arbitration in Nepal

Construction disputes frequently involve complex technical and contractual questions. Arbitration may therefore be selected by parties through an applicable contractual dispute-resolution clause.

Adalat Lawyers represents clients in construction arbitration involving:

  • EPC disputes
  • Infrastructure contracts
  • Government contracts
  • Contractor claims
  • Employer claims
  • Payment disputes
  • Delay claims
  • Variation claims
  • Defect claims
  • Termination disputes
  • Performance guarantees
  • Damages claims
  • Subcontractor disputes
  • Joint venture disputes

Our litigation and arbitration practice focuses on contract interpretation, documentary evidence, expert evidence, project records and applicable statutory provisions.

Construction Litigation in Nepal

Where negotiation, contractual mechanisms or arbitration do not resolve a dispute, litigation may become necessary.

Adalat Lawyers in Nepal represents clients in construction and infrastructure-related litigation involving:

  • Contract enforcement
  • Recovery of outstanding payments
  • Contractor disputes
  • Employer disputes
  • Government-contract disputes
  • Construction defects
  • Damages claims
  • Guarantee disputes
  • Security enforcement
  • Land disputes
  • Banking and finance disputes
  • Loan recovery
  • Corporate disputes
  • Injunctive and interim relief
  • Enforcement-related proceedings

As construction disputes often overlap with banking, corporate, property, procurement and regulatory law, litigation strategy should consider the complete project structure rather than treating an individual contract dispute in isolation.

Construction Disputes Between Banks, Developers and Contractors

Infrastructure financing creates a three-way relationship between lenders, project companies and contractors.

For example, a delayed infrastructure project may affect:

Project Company → construction obligations, project revenue and debt repayment.

Contractor → payment certificates, variations, completion obligations and delay claims.

Bank/Financial Institution → loan repayment, security, guarantees and project-finance obligations.

A dispute involving one party can therefore affect the legal position of the others.

Adalat Lawyers advises and represents banks, financial institutions, developers and contractors in disputes arising from this interconnected legal framework.

Legal Due Diligence for Infrastructure Projects

Before committing substantial capital to a construction or infrastructure project, investors and lenders should conduct legal due diligence.

Our infrastructure legal due diligence may cover:

  • Corporate structure
  • Ownership
  • Land rights
  • Licences
  • Government approvals
  • Environmental compliance
  • Construction contracts
  • EPC arrangements
  • Financing agreements
  • Security documents
  • Insurance
  • Tax considerations
  • Employment arrangements
  • Subcontracts
  • Litigation and arbitration
  • Regulatory compliance
  • Foreign investment
  • Project risks

The objective is to identify legal risks before they become financial or operational problems.

Why Legal Counsel Matters in Construction and Infrastructure Projects

Infrastructure projects are long-term investments involving significant capital, technical complexity and multiple contractual relationships.

Legal problems can arise from a single unclear contractual provision, delayed approval, defective work, payment dispute, financing default, land issue or regulatory decision.

Early legal involvement can help project stakeholders:

  • Structure transactions appropriately;
  • Allocate risks clearly;
  • Draft enforceable contracts;
  • Identify regulatory requirements;
  • Protect payment rights;
  • Manage claims;
  • Preserve evidence;
  • Reduce avoidable disputes;
  • Protect financing arrangements; and
  • Prepare an effective dispute-resolution strategy.

Adalat Lawyers in Nepal | Construction & Infrastructure Legal Practice

Adalat Lawyers in Nepal provides integrated legal services for construction and infrastructure projects, combining construction law, public procurement law, corporate law, banking and finance law, investment law, property law, regulatory law, arbitration and litigation.

Our services are designed for:

  • Construction companies
  • Infrastructure developers
  • EPC contractors
  • Government contractors
  • Project sponsors
  • Foreign investors
  • Joint ventures
  • Banks
  • Financial institutions
  • Lenders
  • Project companies
  • Developers
  • Consultants
  • Engineers
  • Suppliers
  • Subcontractors
  • Government and public entities
  • Other infrastructure stakeholders

From project structuring and contract drafting to banking disputes, construction claims, arbitration and litigation, Adalat Lawyers provides legal representation and advisory services across the infrastructure project lifecycle.

Frequently Asked Questions

What is construction law in Nepal?

Construction law in Nepal involves the legal rules governing construction businesses, public procurement, construction contracts, project development, regulatory compliance, financing, claims and dispute resolution. The Construction Business Act, 2055 and Public Procurement Act, 2063 are among the important laws in this area.

Which law governs public construction procurement in Nepal?

Public construction procurement is principally governed by the Public Procurement Act, 2063 and Public Procurement Rules, 2064, together with applicable sector-specific laws, procurement documents and contractual provisions.

Can construction disputes in Nepal be taken to arbitration?

Construction contracts may provide for arbitration as a dispute-resolution mechanism. The enforceability and procedure depend on the applicable contract and Nepal’s arbitration law and procedural framework.

Do banks need construction lawyers in infrastructure financing?

Banks and financial institutions can require specialized legal support when financing construction and infrastructure projects because loan documentation, collateral, guarantees, project contracts, payment flows and construction risks can be legally interconnected.

Can foreign investors invest in infrastructure projects in Nepal?

Foreign investment may be permitted in applicable infrastructure sectors subject to Nepal’s prevailing foreign-investment laws, sectoral requirements, approvals and restrictions. The Department of Industry identifies numerous infrastructure activities within its investment materials.

What does a construction lawyer do in Nepal?

A construction lawyer may advise on project structuring, contracts, procurement, financing, regulatory approvals, claims, payment disputes, delays, termination, arbitration and litigation.

Conclusion

Construction and infrastructure development in Nepal requires careful coordination of construction law, public procurement, investment, PPP, banking and finance, land, environmental regulation, corporate law and dispute resolution.

The official Government of Nepal legal framework includes the Public Procurement Act, 2063, Public Procurement Rules, 2064, Construction Business Act, 2055, Public-Private Partnership and Investment Act, 2075 and Public-Private Partnership and Investment Regulations, 2077, together with sector-specific legislation and regulatory requirements.

Adalat Lawyers in Nepal serves construction companies, infrastructure developers, contractors, investors, banks and financial institutions with legal advice, contractual assistance, dispute resolution, arbitration and litigation relating to construction and infrastructure projects in Nepal.

For construction and infrastructure projects, legal planning before the project begins can be as important as litigation after a dispute arises.

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