Contractors call for price adjustment of govt tenders
Many ongoing government projects may come to a halt due to pricier construction materials
The Bangladesh Association of Construction Industries (BACI) on Tuesday said government tender prices need to be readjusted in line with the rise in the price of raw materials and other costs in international and domestic markets.
"The price of key construction materials such as MS rods, stone chips, cement, bricks, grills, etc have shot up unnaturally. For example, the price of MS rods has jumped 45% to Tk78-80,000 per ton. The increased price of fuel will also intensify the misery of contractors," said former BACI President Sheikh Md Rafikul Islam at a press conference at Dhaka Reporters Unity on Tuesday.
Wages for workers in the industry have also surged by 60-70%. Many ongoing government construction projects may stop due to the increased costs to be borne by contractors, he added.
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"The availability of financial assistance from banks is also becoming uncertain since contractors are unable to repay loans in time due to the slow progress of projects. As a result, the financial condition of contractors has gone down tremendously," he said.
The association warned that it will be impossible to implement projects if the ongoing abnormal price hike trend is not brought under control.
"All government construction is carried out with a fixed rate on tenders. So, even if material costs rise, we [contractors] do not get a price adjustment from the government," Rafikul Islam added.
"We want price adjustments according to Public Procurement Related rules. The price of construction materials was fixed in 2018, which has not been updated yet," said SM Khorshed Alam, former president of the organisation.
The association President Shafiqul Haque Talukder said, "Many of our member industries are 30 to 40 years old, now on the verge of bankruptcy. Hopefully, the government will solve our problems soon because failure to do so will result in the bankruptcy of contractors, adversely affecting the socio-economic development of the country."
Vice President of the organisation Bimal Chandra Roy, Director Hasan Mahmud Babu, General Secretary of Bangladesh PWD Contractors 'Association, Babul Akhter Babla, and others were present on the occasion.
