{"id":711,"date":"2026-10-08T02:32:59","date_gmt":"2026-10-08T02:32:59","guid":{"rendered":"https:\/\/eve-construction.com\/?p=711"},"modified":"2026-10-08T02:55:53","modified_gmt":"2026-10-08T02:55:53","slug":"special-price-adjustment-nepal","status":"publish","type":"post","link":"https:\/\/eve-construction.com\/%e0%a4%a8%e0%a5%87%e0%a4%aa%e0%a4%be%e0%a4%b2%e0%a5%80\/special-price-adjustment-nepal\/","title":{"rendered":"Nepal Cabinet Approves Special Price Adjustment for War-Hit Construction Materials"},"content":{"rendered":"<p>A special price adjustment Nepal contractors have demanded for years is finally official. The government has decided to grant an extraordinary price adjustment on construction materials whose prices have risen abnormally after the international war that began on February 28 disrupted global supply chains. A Cabinet meeting held on Monday approved a procedure covering five materials: petroleum products, bitumen, HDPE pipes, cement and rebar.<\/p>\n<p>The decision rests on Section 55, Subsection (1)(ka) of the Public Procurement Act, 2063, which allows extraordinary price adjustment in abnormal circumstances. According to the Infrastructure Development Ministry, the special price adjustment Nepal approved this week will apply to public construction contracts that were still in their performance period after 15 Falgun 2082, and will be calculated on the basis of actual and verified consumption of the listed materials.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_88 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewbox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewbox=\"0 0 24 24\" version=\"1.2\" baseprofile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/eve-construction.com\/%e0%a4%a8%e0%a5%87%e0%a4%aa%e0%a4%be%e0%a4%b2%e0%a5%80\/special-price-adjustment-nepal\/#Which_contracts_qualify_for_the_special_price_adjustment\" >Which contracts qualify for the special price adjustment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/eve-construction.com\/%e0%a4%a8%e0%a5%87%e0%a4%aa%e0%a4%be%e0%a4%b2%e0%a5%80\/special-price-adjustment-nepal\/#How_the_10_percent_deductible_works\" >How the 10 percent deductible works<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/eve-construction.com\/%e0%a4%a8%e0%a5%87%e0%a4%aa%e0%a4%be%e0%a4%b2%e0%a5%80\/special-price-adjustment-nepal\/#Contractors_watch_for_smooth_implementation\" >Contractors watch for smooth implementation<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Which_contracts_qualify_for_the_special_price_adjustment\"><\/span>Which contracts qualify for the special price adjustment<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Contracts that do not carry a price adjustment clause can also qualify, provided they meet the prescribed criteria. For contracts that already contain such a clause, the amount receivable under the normal provision will first be deducted, and only the remaining eligible amount will be paid as special adjustment, so that contractors cannot gain twice from the same price rise.<\/p>\n<p>The government has made it clear that ordinary market fluctuations will not qualify under this special price adjustment Nepal package. Only the extraordinary portion of the price rise, caused by the war and the resulting supply disruptions, will be addressed.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_the_10_percent_deductible_works\"><\/span>How the 10 percent deductible works<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Under the approved procedure, if the price of any listed material moves more than 10 percent from the base price, the adjustment is calculated after setting aside the first 10 percent. In practice, this means a contractor bears the first 10 rupees of every 100 rupees of increase, while the government or the concerned project office covers the remaining 90 rupees. Claims must be backed by actual, verified consumption records, which means contractors will need to document exactly how much of each listed material went into the work.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Contractors_watch_for_smooth_implementation\"><\/span>Contractors watch for smooth implementation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The ministry says the decision aims to correct the cost imbalance created by international conditions, keep ongoing development projects running, and provide fair relief to construction entrepreneurs squeezed between fixed contract prices and rising input costs. It also expects the special price adjustment Nepal relief to prevent work stoppages on public projects.<\/p>\n<p>The decision lands just days after the Federation of Contractors Associations of Nepal warned it would halt all construction works over rising cement and steel prices. FCAN had long demanded a price adjustment mechanism, with its general secretary earlier saying the industry had been pressing for price adjustments. The Cabinet move effectively answers that demand, although contractors will now watch how smoothly the special price adjustment Nepal process is implemented in practice. Read our earlier coverage of the FCAN warning here: <a href=\"https:\/\/eve-construction.com\/%e0%a4%a8%e0%a5%87%e0%a4%aa%e0%a4%be%e0%a4%b2%e0%a5%80\/fcan-warns-construction-halt-price-hikes\/\">https:\/\/eve-construction.com\/fcan-warns-construction-halt-price-hikes\/<\/a><\/p>\n<p>Cement producers, for their part, had disputed the allegation of cartel pricing, arguing that factory gate prices reflect market realities and that the industry is already incurring losses amid weak economic activity. The special adjustment procedure now gives project offices and contractors a formal, rules based path to settle claims arising from the price surge.<\/p>\n<p>For readers tracking current rates, Eve Construction News publishes indicative Kathmandu Valley material prices every month, including cement and rebar, on its material prices page: <a href=\"https:\/\/eve-construction.com\/%e0%a4%a8%e0%a5%87%e0%a4%aa%e0%a4%be%e0%a4%b2%e0%a5%80\/material-prices\/\">https:\/\/eve-construction.com\/material-prices\/<\/a><\/p>\n<p>Source: Karobar Daily, <a href=\"https:\/\/www.karobardaily.com\/news\/424355\" target=\"_blank\" rel=\"noopener\">https:\/\/www.karobardaily.com\/news\/424355<\/a><br \/>Source: Corporate Samachar, <a href=\"https:\/\/corporatesamachar.com\/2026\/10\/87674\/\" target=\"_blank\" rel=\"noopener\">https:\/\/corporatesamachar.com\/2026\/10\/87674\/<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>A special price adjustment Nepal contractors have demanded for years is finally official. The government has decided to grant an 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