Causes of Contractual Conflicts in CPEC Project - Two Case Studies

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China-Pakistan Economic Corridor (CPEC) is considered a game changer for the continent of Asia, Pakistan especially. China has invested around US$ 62 Billion in the fully operational corridor. Contractual conflicts are a significant source of delay in CPEC projects. Contractual conflicts are mostly because of poor financial and management control over it. In this paper, we have discussed the types of contractual conflicts that occur in projects that cause delays and the approaches that will help minimize the conflicts for the smooth occurrence of projects. For this purpose, a questionnaire was prepared and distributed to the major stakeholders of the projects. Secondly, the contractual conflicts are discussed based on the Pakistan literature review and compared with those of other countries. Two case studies were conducted to examine its causes: (1) political involvement and legal issues, (2) procurement and contract management, and (3) land acquisition problems

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January 2025

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