FCAN urges govt for timely payment, contract extensions

KAHMANDU: Construction entreprenuers have made a slew of demand to the government to make cosntruction industry vibrant.

Among others, they have demanded that the government agencies release payments on time, extension contract periods of development projects, and take necessary measures to control the rising prices of construction materials.

The demand was made during the national gathering of the Federation of Contractors Associations of Nepal (FCAN) which commenced in Kathmandu on Friday. Construction entrepreneurs from all 77 districts are actively participating in the gathering to discuss the prevailing issues in the construction sector and provide necessary suggestions to the government.

FCAN President Ravi Singh said the national gathering aims to engage in a comprehensive discussion about the current state of the construction industry and explore ways the government can provide support to this vital sector. “We will request the government to take appropriate measures to control the escalation of construction material prices,” Singh asserted. “Additionally, we will request the government to discourage the current practice of spending 70% of the capital budget in the last month of the fiscal year.”

Former FCAN President, Ramesh Sharma, expressed concern that construction work has been adversely affected by delayed payments, primarily caused by last year’s election. He suggested that instead of terminating contracts and initiating fresh bidding, it would be more cost-effective for the government to extend the contract periods.

The gathering seeks to address probelms seen in the construction industry and work collaboratively with the government to find effective solutions.