Construction Federation Warns of Project Halt Due to Unprecedented Price Hikes

Kathmandu. The Federation of Contractors' Associations of Nepal has drawn the serious attention of the government, stating that development construction works cannot be advanced due to the unprecedented price increase in fuel and construction materials.

Stating that some points in the construction work progress and project operation related directives recently issued by the Ministry of Physical Infrastructure and Transport are not practical, the Federation's General Secretary Shivahari Ghimire submitted a letter of attention to the Ministry's Secretary on Sunday.

The Federation has mentioned that due to the ongoing war in the Middle East, the prices of essential materials including fuel and bitumen have increased excessively and there is an extreme shortage in the market. 

The Federation's demand is that the government should provide materials at the previous price or mandatory price adjustment should be made as per the Public Procurement Act, as it is not possible to work at the current high prices in such an inconvenient situation. 

The Federation has prioritized the issue of extending the deadline of projects by a lump sum, considering the situation where work has stopped due to price increases as a 'situation beyond control'.

Similarly, the Federation has demanded that the 'index freeze' work adopted during price adjustment is not legal, so it should be removed immediately and price adjustment should be provided in all types of projects. 

If the government cannot address the problem of the current severe price increase, a 'construction cooling period' should be announced, with construction work halted for a specified period, the Federation has even warned.