Ministry Decides to Implement Special Price Adjustment for Construction Sector
The Ministry of Physical Infrastructure Development has decided to implement a special price adjustment for construction contracts under Section 55(1a) of the Public Procurement Act, 2063. The move follows abnormal price increases in petroleum products, bitumen, HDPE pipes, cement, and rebar caused by international wars and supply chain disruptions.
Kathmandu — The Ministry of Physical Infrastructure Development has decided to implement a special price adjustment for the construction sector under Section 55(1a) of the Public Procurement Act, 2063. The ministry issued a press release today informing about this decision.
According to the release, special price adjustment will be made on the basis of actual and verified consumption in public construction contracts that remain in operation with their performance period intact even after Chaitra 15, 2082, for petroleum products, bitumen, HDPE pipes, cement, and rebar whose prices have risen abnormally due to international wars and supply chain disruptions.
According to the ministry, contracts that do not have annual or price adjustment provisions will also be covered under this arrangement if they meet the specified criteria.
- For contracts with price adjustment provisions, only the remaining eligible amount after deducting the price adjustment amount receivable under existing provisions and agreements will be provided as special price adjustment.
- Only price increases created by extraordinary circumstances, not normal market fluctuations, will be addressed.
- The amount will be determined only on the basis of actual consumption, verified quantity, and related prices, ensuring that double benefits or unnecessary payments are prevented.
The ministry clarified that this decision was made with the objective of preventing construction work from being halted due to extraordinary international circumstances, continuing ongoing development projects, and justly addressing the imbalance created in the construction sector.