Tuesday, 30 November, 2021

Construction industry for hiking project cost

  • Staff Correspondent
  • 10 November, 2021 12:00 AM
  • Print news

Bangladesh Association of Construction Industry (BACI) has demanded policy reforms and price adjustment of project as construction materials cost has increased.

The prices of construction materials including stone, chips, cement, brick, sanitary and electrical products surged in the country.

BACI said the prices of the construction materials soared by about 25 to 40 per cent.

In addition, the wages of the workers involved in this industry also increased by about 70 to 80 per cent, it said.

On the other hand, due to the rise in fuel prices, the cost of transporting construction materials will further increase proportionately, BACI predicted.

The leaders of BACI came up with the remarks at a press conference in Dhaka Reporters’ Unity (DRU)auditorium on Tuesday.

“In this situation, if it is not possible to stop the trend of abnormal price increases, all the construction work of the project will come to a standstill,” said BACI president Engr. Shafiqul Haque Talukder. He said if it continues, the implementation of different projects will become impossible. “Normally, all the work orders of the government are funded projects and given in fixed rates. But when the prices of construction materials increase, the rates are not adjusted with the increases,” BACI president said.

“However, in foreign funded projects, there isa provision of price adjustment or rate escalation,” he mentioned.

BACI raised three-point demands. It called for readjusting prices through a special arrangement according to the formula mentioned in the PPR as the current workis implemented through the fixed-rate contracts.

It also urged the government to update all government tenders at current market rates.  BACI requested to include the cost of water and electricity used in the project in the PWD rate schedules.

BACI leaders said if their demands are not met, all the government construction projects will come to a standstill. They said implementation of the annual development programmes will be hampered, the socio-economic development of the country will be adversely affected and a large group of workers will become unemployed.

They saidthe contractors will also go bankrupt and financial institutions will suffer as well.