Jamshedpur, May 6: The Builders? Association of India (BAI) has sought intervention of the Centre and the state governments to introduce price escalation clause in the contract documents.

The move was prompted by the rising prices of labour and material used in the construction industry due to which many projects are delayed.

The association has asked the state government to introduce the clause as several rural and urban infrastructure development projects are lingering for years due to poor law and order and rising Naxalite activities in several states including Jharkhand.

Newly-sworn president of BAI B.N. Dikshit said, ?In the Central and state government sponsored projects, most one year-contract is stretched to several years due to extremely poor law and order situation, especially in the rural areas. The government should come forward to introduce the price variation clause (PVC) depending on the rise of cost of labour and construction materials like cement and steel.?

Dikshit was addressing the installation ceremony of Jamshedpur centre of BAI here at the Savak Nanavati Technical Institute auditorium. Delegates from across the country participated in the programme. The all-India managing committee and general council meeting of BAI is scheduled to take place tomorrow at the same venue.

BAI, the apex organisation in the country for contractors and builders, has been convincing the Centre and the respective state governments to introduce PVC in contract documents signed between the contractors and the government departments.

?There should be provision of more than 5 per cent PVC in contract documents. The contractor and government agencies should resolve the matter in case of delay due to law and order and Naxalite problems,? said association vice-president Ashok K. Choudhary. Association members also demanded a check on steel and cement prices.

?The unprecedented hike in the prices of steel and cement has affected the 3.20 lakh crore construction industry severely. Several projects are held up midway due to exorbitant steel prices as the contractor is unable to finish construction work within the estimated cost,? added Dikshit.

The association has proposals to establish Jharkhand academy of construction on the lines of Hyderabad based National Academy of Construction.BAI has sent a communiqu? to chief secretary P.P. Sharma in this regard.