--- title: "Operating environment makes projects complex, uncertain" subject: "Project Engineering" chapter: 1 key: "semester_7/project_engineering:task-environment-complex-uncertain-nepal" source: https://www.bctengineer.com/q/semester_7/project_engineering/task-environment-complex-uncertain-nepal site: BCT Engineering --- # Operating environment makes projects complex, uncertain Project Engineering · Chapter 1: Introduction of Project and Project Management - Asked in: 2079 Bhadra, 6 marks - Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14 - Page: https://www.bctengineer.com/q/semester_7/project_engineering/task-environment-complex-uncertain-nepal - Whole chapter: https://www.bctengineer.com/md/semester_7/project_engineering/chapter-1 ## Question Describe with a suitable example, considering a running project of Nepal, how the different operating/task environments make the project more complex and uncertain. ## Short answer The Upper Tamakoshi Hydropower Project (456 MW) became complex and uncertain because political changes, price rises, resettlement demands, difficult geology, monsoon floods, landslides and the 2015 earthquake interacted with stakeholders following different interests. These factors delayed commissioning to 2021 and raised cost, forcing schedule revision, extra funds, damage repair and extensive stakeholder management. ## Answer A project operates inside several environments, each with its own changing forces. Their interaction makes the project more complex (many parties and rules) and uncertain (outcomes cannot be predicted). #### Example: Upper Tamakoshi Hydropower Project (456 MW) | Environment | Effect on the project | |---|---| | Political | Policy changes, delay in approvals, strikes and bandhs | | Economic | Rise in prices of cement, steel and fuel; exchange rate affecting the foreign-currency electromechanical contracts; financing from the Employees Provident Fund and other domestic institutions | | Social | Resettlement, compensation, local demands for jobs and benefits | | Technical | Long tunnels, difficult geology, imported turbines needing specialist technology | | Natural | Monsoon floods, landslides and the 2015 earthquake damaged works and access | | Task environment | Contractors, suppliers, lenders and government agencies each follow their own interests and schedules | | Legal | Environmental clearance, land acquisition and licence conditions | The project was delayed by several years (it was finally commissioned in 2021) and its cost increased, because these environments changed during construction. The manager had to revise the schedule, seek extra funds, repair damage and manage many stakeholders, which shows the added complexity and uncertainty. ## Check yourself The answer's key points as multiple-choice questions, with the correct option and why. 1. How do the answer's terms 'complex' and 'uncertain' differ? A. Complex means short; uncertain means long B. Complex means many parties and rules; uncertain means outcomes cannot be predicted C. Complex means cheap; uncertain means fast D. Both mean low cost Answer: B. Interaction of environments creates complexity (many parties, rules) and uncertainty (unpredictable outcomes). (Key point: Complexity vs uncertainty) 2. Which natural event damaged works and access in the Upper Tamakoshi example? A. 2015 earthquake along with monsoon floods and landslides B. Volcanic eruption C. Drought only D. Snow avalanche in Kathmandu Answer: A. Monsoon floods, landslides and the 2015 earthquake were cited. (Key point: Natural effect on Upper Tamakoshi) 3. Which economic factors affected the project? A. No effect of exchange rate B. Free financing C. Falling price of all materials D. Rise in cement, steel and fuel prices and exchange rate affecting foreign loans Answer: D. Price rises and exchange rate exposure on foreign loans were the economic effects. (Key point: Economic effect) 4. Which is a social-environment effect in the example? A. Policy change B. Resettlement, compensation and local demands for jobs and benefits C. Imported turbines D. Long tunnels Answer: B. Resettlement, compensation and local demands are social issues; tunnels and turbines are technical. (Key point: Social effect) 5. What was the result and the manager's response? A. No change in cost B. Early completion C. Project was abandoned without action D. Delay and cost increase; manager revised schedule, sought funds, repaired damage and managed stakeholders Answer: D. Changing environments caused delay and cost rise, requiring revision and stakeholder management. (Key point: Result and response) ## Related in Project Engineering - [Project types and task environment elements](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Aproject-types-task-environment-elements) — Project Engineering, chapter 1 - [Task environment influence on project objectives](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Atask-environment-influence-objectives) — Project Engineering, chapter 1 - [Project environment; political environment in Nepal](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Apolitical-environment-nepal) — Project Engineering, chapter 1 - [Different environments of a project](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Adifferent-environments-project-conducted) — Project Engineering, chapter 1 - [Types of projects; effect of project management](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Aproject-types-effect-of-management) — Project Engineering, chapter 1 - [Risk sources in over-budget, delayed projects of Nepal](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Arisk-sources-nepal-delayed-projects) — Project Engineering, chapter 5 ## Related in other subjects - [Why 3D graphics is more complex than 2D](https://www.bctengineer.com/question.md?key=semester_5%2Fcomputer_graphics%3Awhy-3d-more-complex-viewing-pipeline) — Computer Graphics, chapter 4 - [Short note: Major environment issues of Nepal](https://www.bctengineer.com/question.md?key=semester_7%2Ftechnology_environment_and_society%3Anepal-env-issues-note) — Technology, Environment and Society, chapter 4 - [Function of project management in Nepal](https://www.bctengineer.com/question.md?key=semester_8%2Fconstruction_management%3Acpm-function-nepal) — Construction Management, chapter 1 - [Project environment](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Aproject-environment) — ICT Project Management, chapter 2