Bitumen Price Escalation Compensation for NH Projects

This circular prescribes a special price adjustment mechanism to mitigate the impact of significant increases in bitumen prices on eligible National Highway projects and ensure uninterrupted construction and maintenance works. It applies to specified EPC, HAM and PBMC projects having a Bid Due Date on or before 31 March 2026 and containing provisions for price escalation, with the measure applicable to works undertaken from 1 April 2026 to 30 June 2026. The document specifies the methodology for calculating additional price adjustment for bitumen consumed in bituminous works based on actual consumption, the base-date rate of bitumen and the average monthly rate at the nearest PSU refinery. It also provides provisions for calculating price adjustment for other components under EPC and HAM contracts while avoiding duplication of bitumen-related escalation. The document includes illustrative calculations for EPC and HAM projects, covering bitumen and CRMB consumption, applicable rates, cost escalation and the resulting total price variation. It also refers to separate provisions applicable to STMC and other contracts where no escalation provision exists.