Audit, tax, and advisory services for construction contractors, infrastructure developers, and real estate businesses in Nepal.
Industry context
Nepal’s construction sector underpins infrastructure development, real estate, and the country’s post-earthquake reconstruction agenda. Contractors and developers work on government-funded projects, donor-financed infrastructure, private commercial developments, and residential housing. The sector operates within the Public Procurement Act and Regulations, contractor classification rules from the Department of Urban Development and Building Construction, and a tax regime with specific provisions for works contracts and retention.
Construction finance is uniquely complex. Project costing, percentage-of-completion revenue recognition under NFRS, VAT on works contracts, retention money accounting, advance payments, sub-contractor management, and disputed claims all sit on the finance function’s plate. Working capital and bank guarantee management are constant pressure points.
How SACA serves the construction sector
- Audit & Assurance — Statutory audits, project-specific audits, and donor-mandated audits for contractors and developers, with percentage-of-completion revenue reviews.
- Tax Advisory & Compliance — Income tax, VAT on works contracts, withholding tax on sub-contractor payments, and tax treatment of retention and mobilisation advances.
- Transaction & Financial Advisory — Support on project financing, joint venture structuring for large works, business valuations, and due diligence for acquisitions or partnerships.
- Risk & Internal Controls — Project cost controls, claim and variation order reviews, sub-contractor risk frameworks, and bank guarantee tracking.
- Outsourced Finance Functions — Project accounting, payroll including site labour, VAT and TDS compliance, and management reporting structured around projects.