ABSTRACT
This chapter outlines of the legal environment in Nepal- the constitutional structure, the legal system and the court system. It outlines the construction industry and discusses the impact of the Covid-19 pandemic on the execution of construction projects and the operation of construction contracts. Applicable legislation to federal, provincial and local entities in accordance with the constitutional structure of the state is identified for three situations: (1) the governing law is that of the jurisdiction, (2) the Site/Country is in the jurisdiction and (3) the ‘seat’ of dispute determination is the jurisdiction. The specific requirements of applicable legislation in Nepal are used to identify what Particular Conditions are necessary or desirable for consistency with applicable laws for (1) the governing law is that of the jurisdiction, (2) the Site/Country is in the jurisdiction and (3) the ‘seat’ of the dispute determination is the jurisdiction. Issues that a court or arbitrator may construe differently to that expected from the words of the contract because of local law or custom are identified.
