Early Warning Signs of Claims on Hydropower Projects: Lessons from the Field
Hydropower projects are, by their nature, complex, interface-driven, and highly sensitive to external factors such as geology, weather, security conditions, regulatory constraints, and stakeholder coordination. While most contracts attempt to allocate risks clearly, the reality on site often evolves differently. This article draws on practical project experience to highlight how seemingly manageable delays can evolve into formal claims if early warning signs are not addressed. Based on experience from a hydropower project in South Asia, this article further highlights some of the early warning signs that, if not addressed in time, can escalate into formal claims and disputes. Project Context The project in question was a mid-sized hydropower development in South Asia with an original contractual duration of approximately three years. Like many such projects, it involved multiple interfaces, including civil works, electro-mechanical installations, and a separate transmission line…