Bengaluru Contractors Halt ₹1,000 Crore Civic Works as Construction Costs Surge

Bengaluru is facing a fresh challenge to its ongoing road and civic infrastructure works, with contractors halting projects worth more than ₹1,000 crore over a sharp rise in construction material costs.

The Greater Bengaluru City Corporations Contractors Association has asked the Karnataka government to introduce a star rate mechanism for projects that have already been tendered. Contractors say the rates quoted when these projects were awarded no longer reflect current market conditions, leaving them with mounting losses.

Bitumen has become the biggest pressure point. According to the association, its price has increased from around ₹45,000 per quintal to ₹92,000. The contractors have also pointed to higher prices of cement, gravel and steel, which have added to the overall cost of executing road and infrastructure projects.

The impact is being felt across several types of civic work, including road asphalting, pothole filling and white-topping projects. Contractors say they have stopped work rather than continue projects at rates that they consider financially unviable.

The disruption could have a direct impact on road maintenance across Bengaluru. Delays in pothole repairs and other road works could leave already damaged stretches unattended for longer, particularly as the city continues to deal with heavy traffic and recurring maintenance requirements.

The Greater Bengaluru Authority has already ordered star rates for asphalting work for three months. However, the contractors association says there is still uncertainty among officials over how the mechanism should be implemented.

Contractors are seeking a broader solution that also covers projects already tendered. They want the government to revise the rates for bitumen and other construction materials based on prevailing market prices, so that the additional costs are not borne entirely by contractors.

The issue has now reached the state government. A delegation from the contractors association recently met Greater Bengaluru Development Minister Krishna Byre Gowda and raised concerns over the financial pressure affecting ongoing works. The minister has assured the delegation that the demands would be examined.

The dispute highlights a wider problem facing public infrastructure projects when material prices move sharply after contracts are awarded. While contractors need protection from unsustainable cost increases, the government also has to ensure that any revised rates remain financially responsible for public expenditure.

For Bengaluru, the immediate priority is to prevent the stoppage from turning into a prolonged disruption. Road resurfacing, pothole repairs and other civic works are closely tied to everyday mobility, making a quick resolution important for both contractors and residents.

The next step will depend on how the government addresses the demand for revised rates and clarifies the implementation of the star rate mechanism. Until then, several projects worth hundreds of crores remain at risk of further delays.