SIDDHARTHANAGAR: The Lumbini Construction Entrepreneurs Association has said that the construction sector is facing serious challenges due to rising prices of construction materials and fuel.
Speaking to RSS, Association President Ramesh Belbase said the sector has been severely affected by the recent sharp increase in costs.
He noted that continuous rises in the prices of diesel, bitumen, iron, cement, transportation, and labor wages have made it difficult to execute projects at previously agreed rates. According to him, the sharp increase in fuel and bitumen prices has placed significant financial pressure on construction entrepreneurs.
Belbase further said that since millions of people are directly and indirectly linked to the construction sector, the price hikes are also affecting the broader economy. He added that contractors, workers, and ongoing projects have all been impacted due to the lack of timely adjustment in project costs.
Warning that development works could slow down or come to a halt if cost revisions are not made on time, he urged the government to facilitate arrangements related to bank guarantees, insurance, deposits, and payroll support for construction entrepreneurs.
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