Siddharthnagar. Lumbini Contractors’ Association has said the construction sector has been facing serious problem due to the price hike in construction materials and fuel.

Ramesh Belbase, president of the association, said that the construction sector has been badly affected due to exorbitant cost hike in recent period.

He said that the construction of the project could not be done at the old rate due to the continuous increase in diesel, bitumen, iron, cement, transportation cost and workers’ remuneration. He complained that the skyrocketing price of fuel and bitumen has put a lot of financial pressure on the contractors.

President Belbase said that the price hike has affected the overall economy as millions of people are directly and indirectly involved in the construction sector. According to him, contractors, workers and projects have all been affected due to lack of timely cost adjustment.

He also urged the contractors to ease the provisions related to bank guarantee, insurance, deposit and penetration of road projects if the price adjustment was not adjusted on time.