Following a marked increase in the price of construction and other materials, contractors have sought the government to revise project costs commensurate with the rise in prices.
Though the government has hiked project costs by 12-14% – for the first time in three years – contractors contend that the increase was inadequate and calculated on six-month-old prices.
Speaking to DH, D Kempanna, president of Karnataka State Contractors’ Association said that many contractors were facing problems due to increased prices. “There is a clause in all tender agreements which provides for any rise in prices. But, it covers only three items – cement, steel and asphalt,” he said.
