Rising prices of materials to hit construction sector hard: BACI

Expressing concerns about the rising prices of building materials, the Bangladesh Association of Construction Industry (BACI) has said the trend will create a negative impact on the sector.

“The recent rise in prices of construction materials could halt the government projects, hamper annual development programmes, and affect the country's socio-economic development, leaving a large number of workers jobless,” the association leaders said in a press conference in the capital on Tuesday.

They said prices of the key materials, including MS rod and other iron products, stone chips, cement, brick, and sanitary, are increasing abnormally. Based on the quality of the products, the price hike rate is 25-40 per cent.

Alongside, the wages of the workers involved in the sector have also increased by 60-70 per cent.

Besides, the cost of transporting construction materials will also go up in proportion to the recent fuel price hike, the association said.

At the press conference, the speakers expressed concerns that implementation of various projects may come to halt if such a trend of abnormal price hike continues.

Drawing attention of the prime minister and the authorities concerned of the government, the association leaders demanded that the price adjustment should be introduced by issuing a notification as per the PPR formula in special arrangements as the current work is being done on a fixed rate contract.

The rate schedule of all government tenders should be updated as per the current market rates, they said.

The cost of water and electricity used in the project should be included in the PWD rate schedule, the association added.