Construction Industry Urges Immediate Address of Price Hikes and Administrative Pressures

President Dhanishwar Gautam of the Nepal Construction Industry Council in Gulmi reported that the costs of petroleum products, bitumen, cement, iron materials, and labor have surged by 30 to 36 percent. Construction professionals have called on the government to immediately address this price increase as a ‘price escalation’ and to eliminate unnecessary administrative pressures. They warn that the rising costs and supply instability in the construction sector are directly affecting project progress and could hinder the national development process. (March 27, Gulmi)

The abnormal price increases of essential materials across development and construction projects nationwide have impacted the overall construction sector. According to Gautam, persistent rises in the costs of petroleum products, bitumen, cement, iron materials, transportation, and labor have driven construction expenses up by an average of 30 to 36 percent. Businesspersons indicate that the instability in supply and external factors have had a direct adverse effect on the progress of most projects under these circumstances.

They emphasized that this issue is not limited to a single project or company, but a shared nationwide challenge. Despite the sensitive situation, various agencies have continued applying unnecessary administrative pressure, repeatedly requesting clarifications, making inquiries, and causing mental stress. Business leaders have highlighted these concerns as significant. They argue that the decision-making process must adopt transparency and fairness, asserting that informal and unethical expectations undermine good governance.

Construction industry professionals demand that the government immediately address the price increases by acknowledging them as ‘price escalation,’ recognize external and uncontrollable conditions as ‘force majeure’ or ‘exceptional conditions,’ end unwarranted pressures on businesses, and conduct all procedures transparently and fairly. In a press release, President Gautam emphasized that disregarding the true state of the construction sector will further impact projects. He warned that obstacles to national development could arise, potentially forcing the industry to take formal actions with relevant authorities.