Contractors warn of suspending construction work from April 7, citing excessive rise in prices of construction materials

Published On: April 3, 2022 07:00 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, April 3: Contractors have warned to declare a ‘construction holiday’ from Thursday, citing the excessive hike in the price of construction materials and transport.

Recently, the prices of construction materials like iron rod, cement, bricks, sand and gravel, among others, have skyrocketed in the domestic market. While manufacturers have been blaming the price hike on the increase in the cost of raw materials due to the ongoing war between Russia and Ukraine and increasing prices of petroleum products, many contractors have also been blaming upcoming local elections as also a factor behind the rising prices of construction materials.

“As the elections of local bodies are approaching nearer, many suppliers have been complaining about their compulsion to provide monetary support to the political parties,” said Balaram Bam, a contractor from Sitapaila, Kathmandu. “This has also helped market prices to rise further,” he said.

Through a press release last week, the Federation of Contractors’ Associations of Nepal (FCAN) also stated that contractors are unable to carry forward their work due to the revised insurance premium provisions by the regulatory body and the recent price hikes of the construction materials. FCAN President Rabi Singh said the contractors have been facing excessive costs due to the situation.

According to Singh, contractors have to bear excess financial burden if the price variation amount is up to 10 percent. “Although we have been seeking policy intervention from the government, the authorities concerned have been apathetic so far,” he said. 

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