Navigating Legal Complexities in Public Infrastructure Projects: The Intersection of Contract Law and Construction Industry Practices

Abstract

Delays and cost overruns in India’s public infrastructure projects often stem from legal and contractual disputes exacerbated by a complex legal framework. This study investigates key challenges, including ambiguous contract language, poor risk allocation, regulatory delays, and cost escalations, which lead to significant disputes. It also assesses alternative dispute resolution (ADR) methods, finding them valuable but often implemented too late. To address these issues, the study proposes preventive measures, such as clear contracts, robust risk management, and early dispute avoidance mechanisms like dispute avoidance and adjudication boards (DAABs), and remedial actions, including strategic use of ADR and recovery plans for affected projects. The conclusions emphasize the need for improved legal and regulatory frameworks in India, recommending standardized contracts, better risk management, and effective dispute resolution mechanisms to enhance project outcomes and provide insights for global infrastructure projects facing similar challenges.