Punjab Issues New Official Construction Material and Labor Rates for Second Half of 2026

ISLAMABAD: The Punjab Finance Department has released the updated Market Rates System (MRS) for government construction projects for the second half of 2026. The revised rate list will remain effective from July 1 to December 31, 2026.

The new MRS includes updated official rates for construction materials, labor, and development works, which will be used to prepare cost estimates, evaluate tenders, and determine construction expenses for public sector projects across the province.

According to the Finance Department, the revised schedule covers the latest official rates for steel bars (rebar), cement, bricks, sand, gravel, concrete, plaster, flooring, roofing, roads, sewerage systems, pipelines, drainage works, fittings, electrical installations, and other construction-related activities. The update aims to align government project costs with prevailing market prices.

Under the new rates, the base price of Grade 40 steel bars has been fixed at approximately Rs. 11,727 per maund, while Grade 60 steel bars have been priced at around Rs. 11,992 per maund. Including cutting, bending, laying, and binding charges, the total cost has been set at approximately Rs. 12,045 per maund for Grade 40 steel and Rs. 12,317 per maund for Grade 60 steel.

The department said the updated MRS also includes composite rates for various construction works, combining the costs of cement, bricks, sand, gravel, steel, labor, and other essential inputs to establish standardized pricing for government development projects.

Officials stated that the 222-page MRS document contains 27 chapters covering a wide range of public infrastructure projects, including buildings, highways, bridges, drainage systems, sewerage networks, government offices, educational institutions, hospitals, and other development schemes.

Experts believe the revised MRS will improve transparency in cost estimation, ensure that government tenders reflect current market prices, and facilitate the timely completion of development projects. It will also provide contractors, engineers, consultants, and government departments with a uniform pricing framework, reducing discrepancies in project estimates.

The Punjab Finance Department has directed all relevant government departments, development authorities, and contractors to prepare project estimates, tenders, and payments in accordance with the revised MRS for the period from July 1 to December 31, 2026.