Construction Sector Faces Crisis Due to Soaring Material Costs, Warns Federation President

Kathmandu. President of the Federation of Contractors' Association of Nepal, Nicolas Pandey, has stated that the country's construction sector is in a serious crisis due to the excessive price increase in construction materials. Speaking at a meeting of the Infrastructure Development Committee of the Federal Parliament, President Pandey warned that the construction sector would completely collapse if the government does not adjust prices in time.

President Pandey mentioned that the prices of construction materials, including petroleum products, have increased unexpectedly due to the Middle East war and global inflation. 'There is a clear provision in Section 55 of the Public Procurement Act 2063 that prices of construction materials will be adjusted if they fluctuate by more than 10 percent,' Pandey said, 'but due to the non-implementation of this mandatory legal provision so far, construction works have reached a standstill.'