Government approves special price adjustment for public construction contracts

The government has decided to make special price adjustments in public construction contracts. The Council of Ministers meeting held on Monday made this decision under Section 55(1)(ka) of the Public Procurement Act, 2063.

The relief has been given just before Dashain to construction businesses hit hard by higher costs, as fuel and construction materials have become much more expensive.

According to the Ministry of Physical Infrastructure Development, petroleum products, bitumen, HDPE pipes, cement and rebar, which have become abnormally expensive due to international conflicts and supply chain disruptions, are covered.

According to Physical Infrastructure Development Minister Sunil Lamsal, contracts whose performance period remains valid after Chaitra 15, 2082 will be adjusted based on actual and verified consumption. Annual contracts and contracts without a price adjustment provision will also be covered if they meet the set criteria.

For contracts that already have such a provision, the remaining amount will be paid only after deducting the adjustment amount due under the agreement.