RAWALPINDI, Aug 13: Uplift activities in the Rawalpindi district have come to a virtual halt as contractors are refusing to bid for government tenders unless they are compensated for the inflation-related escalation in the cost.

Members of the local chapter of the Government Contractors Welfare Association Punjab had decided about the boycott last month after the provincial government ignored their demand for the price variation caused by the spiralling prices of construction materials.

Government departments and autonomous bodies have been hit hard by the boycott, as they have not been able to shortlist a single contractor for executing their development projects.

Worst hit are said to be the road and school-building projects. Contractors in both sectors have been on strike, which may spread.

They plan to hold a convention in Peshawar on August 18 to persuade their counterparts in NWFP to observe a similar strike and boycott government tenders.

Various civic agencies and government departments have floated dozens of tenders for uplift projects including the Rawalpindi Development Authority (RDA), town municipal administrations, provincial highways (Communication and Works) and buildings departments but the contractors are staying away from bidding to push their demand.

"We will continue the boycott until the Punjab government compensates us for the hike in the prices of steel, cement, bricks and other construction materials. We have no option but to stay away from all kinds of government contracts," President Government Contractors Welfare Association Rawalpindi zone Chaudhry Hafeez told Dawn.

Officials in various civic agencies said the boycott of contractors was badly affecting work on the uplift projects, adding roads and building sectors were much affected by the move.