Construction Body Urges Emergency Declaration Amid Rising Costs

Kathmandu, April 11: The Nepal Construction Industry Council has called on the government to declare an emergency in the construction sector, citing sharp increases in the prices of fuel and essential building materials.

In a statement issued on Friday, the Council said the ongoing tensions in the Middle East have led to repeated hikes in diesel, petrol and kerosene prices, severely affecting construction activities across the country.

The Council noted that, along with fuel, the rising costs and shortages of key materials such as bitumen, cement and steel rods have pushed contractors into a difficult situation and slowed down projects.

It also pointed out that the current legal framework does not allow for timely price adjustments in construction contracts. To address this, the Council urged the government to immediately introduce the ‘Price Adjustment Guidelines-2’ and ensure that contracts of all durations include provisions for price revisions.

The Council said such measures are necessary to provide relief to construction entrepreneurs at all levels affected by escalating costs.