AHMEDABAD: The Gujarat Real Estate Regulatory Authority (GujRERA) has reached out to the Roads and Buildings (R&B) department to inquire if there have been any extensions granted for government civil projects due to the West Asia crisis. Real estate groups are urging GujRERA to approve a six-month extension for ongoing projects, pointing to significant increases in construction costs and uncertainties in supply chains.
Sources indicate that GujRERA is examining existing practices within the state government’s contracting framework before making decisions on the developers’ requests.
A source from GujRERA stated, “The central government has granted extensions of two to four months for various projects by citing force majeure (unforeseeable circumstances). However, there is no precedent for any state RERA extending project completion deadlines.”
The source continued, “Thus, we have sought clarification from the R&B department.”
Currently, the authority is considering whether the circumstances justify a blanket extension under force majeure provisions. They are evaluating that many developers already set extended completion dates upon project registration while noting that the immediate impact of the conflict on pricing and supply chains has lessened compared to the initial months.
The Confederation of Real Estate Developers’ Associations of India (Credai), Ahmedabad, has formally requested a six-month extension for ongoing real estate projects under Section 6 of the Real Estate (Regulation and Development) Act.
Credai has cited supply disruptions, labor shortages, and sharp increases in raw material costs as factors jeopardizing project timelines.
In its submission, Credai, Ahmedabad, pointed out that the conflict has impacted the availability of crude-linked construction materials and disrupted procurement cycles, complicating execution timelines.
They warned that any delays could affect new project launches and decelerate overall construction activity across the market.
Credai, Ahmedabad, noted considerable price increases across a broad spectrum of materials, including cement, steel, tiles, aluminum, PVC pipes, paints, ready-mix concrete, cement blocks, and waterproofing materials. Suppliers have raised prices by 30% to 60% since the onset of the conflict, and availability remains inconsistent.
The confederation argued that rising input costs have inflated overall project expenses by 10% to 20%, undermining the budgets and cash flow assumptions made during project registration.
They asserted that these developments are beyond the control of the developers, qualifying them for relief under force majeure provisions.
