Legal Environment

Legal environment refers to all the legal surroundings that affect project activities. It consists of an array of acts, rules, regulations. It defines what projects can and cannot do.

Legal environment is concerned with
  • Protecting the rights and interests of clients, contractors, employees and the society.
  • Providing grounds on which project activities can be carried out. It encourages or restrains activities by providing facilities to law abiders and giving punishment to law breakers.
  • Regulating activities through legal provisions relating to wages, labor relations, foreign investment, foreign exchange, environment protection, habitat protection, project location, imports, exports and taxation etc.
Projects must ensure that their activities conform to the laws of the land. They must comply with legal provisions in force.

The important legal factors that influence projects are given:
Factors in Legal Environment of Project
  1. Law: It consists of an array of laws enacted by the Parliament. It also protects the rights and interest of project participants.
  2. Courts of Law: Courts are institutions established by law to solve disputes. Nepal has a three-tier court system. The Supreme Court is at the national level and is the highest level of judiciary. The courts of Appeal are at the middle level. The 75 district courts are at district level.
  3. Law Administrators: Various law enforcement agencies ensure implementation of laws and the judgements of the courts of law. Government agencies, lawyers, police and jails play an important role in law administration.

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