Construction material price hike: Contractors threaten to stop govt projects

The Local Government Engineering Department (LGED) Contractors Association have threatened to stop all ongoing government development projects if the price of construction materials is not readjusted within the next 15 days.

The association gave the ultimatum at a press conference held at the S Rahman hall of Chattogram Press Club on Monday.

The price of construction materials has surged by 35-40% in the last six months. Many ongoing government development projects, worth around Tk12,000 crore, are under threat in Chattogram due to the increased costs which have to be borne by the contractors, said a press statement.

"The development projects are in progress in Chattogram under 2,500 contractors at present. Along with the price hike of construction materials, wages for workers in the industry have also increased from Tk500 to Tk800," said General Secretary of Chattogram LGED Contractors Association Asaduzzaman Titu at the press conference.

"The price of 60-grade rods has increased from Tk50,000-52,000 to Tk82,000-84,000. Stones, previously imported at Tk3,300, are now being imported at Tk5,000. Cement's price has risen from Tk360 to Tk400-420 and Bitumen from Tk6,300 to Tk11,000. Previously sold at Tk42,000 per tonne, Bitumen liquid is being sold at Tk60,000 per tonne currently," he added.

Asaduzzaman Titu also informed that the total costs for some of the ongoing government development projects were estimated in 2014, and some in 2016. Currently, the market price of the construction materials was much higher than in the previous years.

Chattogram LGED Contractors Association President Mohiuddin Seful addressed the press conference.

Shamsuzzaman Titu, Mahdin Haider, Nazrul Islam, Salauddin Liton, Saiful Islam, among other contractors, also attended the event.