Bitumen Price Escalation Relief for STMC & Item Rate Works

Circular prescribing a special bitumen price adjustment mechanism for eligible STMC, Item Rate and short-duration EPC contracts without an existing price escalation provision.

About Dataset

This circular provides a price adjustment mechanism as a relief measure for the abnormal increase in bitumen prices affecting National Highway works. It applies to Short-Term Maintenance Contracts (STMC), Item Rate works and EPC contracts of less than 18 months duration where no price adjustment mechanism has been provided. The price adjustment is applicable for works undertaken during the period from 1 April 2026 to 30 June 2026 for eligible contracts having a bid due date before April 2026. The additional payment for bituminous work is based on the actual quantity of bitumen consumed, subject to the approved Job Mix Formula, and the change in bitumen prices between the specified reference price at the nearest IOCL refinery and the price applicable during the period of work. The circular specifies that no price adjustment is admissible for items other than bitumen. It also clarifies that EPC, HAM, Item Rate and PBMC works having an existing contractual price-adjustment provision will continue to be governed by the Ministry's circular dated 01.04.2026.

Purpose of Dataset

To Provide Relief Through Price Adjustment For Abnormal Increases In Bitumen Prices For Eligible Stmc, Item Rate And Short-duration Epc Contracts Where No Price Adjustment Mechanism Is Provided In The Contract.