Business

‘Construction sector faces setback for price hike of raw materials’


Published : 30 Nov 2021 08:16 PM

The industrialists hoped that after the epidemic is over, the wheel of the country's economy would turn and the construction sector would turn around. But the continued rise in prices of construction materials has had the opposite effect. 

They opine the price of rods, stones, bricks, sand, thai-glass, aluminum products, SS pipes, indoor fittings and other construction materials have risen 20 to 25 percent in the last 4 to 5 months. 

The FBCCI Standing Committee for Construction Sector, met on Saturday to discuss the issue.

Speakers at the meeting said that due to the recent price hike, it is not possible to complete the construction work as per the pre-agreed price. In addition, the government's fiscal policy, including AIT and VAT, is often changed after tenders are submitted. 

In these cases, the members of the FBCCI's Standing Committee for Construction have suggested that there should be a price verification clause in government tenders. After 56 days of the deadline, the speakers proposed to charge interest for late payment. 

At the same time, the members of the standing committee urged to discourage the participation of foreign companies in the government infrastructure projects.

Md. Jashim Uddin, President of FBCCI presided over the meeting held at FBCCI office. 

He said most of the projects in the country are being implemented through foreign companies. As Bangladesh becomes a developing country, it needs to increase its reliance on local construction companies. 

FBCCI would take maximum initiative for the progress of local organizations, he added.

FBCCI Senior Vice President Mostofa Azad Chowdhury Babu, Vice President Md. Aminul Hoque Shamim, Director Rejul Kariem Rejnu, and Director in Charge of the Standing Committee Engineer Ghulam Md. Alomgir, Chairman of the Committee and Chairman of Spectra Ltd. Engineer Khan Md. Aftabuddin, Co-Chairmen Engineer S.M. Khorshed Alam, MD, Dienco Ltd., Md. Abdul Jabbar were also present at the meeting.