The Compensation Committee of construction companies are reported to have finalised the structure for compensating contractors working on government projects to alleviate the pressure from rising costs. The committee has submitted the structure as part of a new law that is currently being drafted and is expected to be passed by parliament before the end of the month. This is to accommodate the increase in construction costs following the lifting of fuel subsidies, the introduction of a VAT and the EGP float. The size of the compensation will depend on the size and status of each contract. The deal is likely to replicate a similar arrangement in 2003, when the currency was significantly devalued. (MEED)