Construction firms, raw material producers to meet every 3 months 

Construction companies and raw material producers have decided to meet every three months to maintain stability in the construction sector in Bangladesh.

Due to the increase in expenditure, the country's construction companies are struggling to implement development projects within the estimated budget, reads a press release. 

In this context, Bangladesh Steel Manufacturers Association (BSMA) and Bangladesh Association of Construction Industry (BACI) held a meeting at FBCCI office on Wednesday afternoon.

BSMA leaders said the price of rod produced in the country has logically increased due to increase in the price of raw material in the world market.

At present, Scrap costs 79% additional expense, resulting in overall production costs increased by 52%. 

In contrast, the selling price has increased by only 37%. 

Currently, the selling price of per metric ton rod is Tk78,000, while the same in West Bengal, India, costs Tk86,000, the BSMA Leaders added.

At the meeting, the steel producers said that if the construction companies were allowed to import rods, the domestic industry would suffer and a large number of people would lose their jobs. 

In such a situation, BSMA demanded reduction of all existing duties and taxes on scrap and sponge iron imports for local manufacturers.

BACI leaders said that the government procurement rules-PPR and circular issued by the CPTU allow price adjustment in government projects. 

However, most of the government-funded projects did not include price adjustment clauses in their contracts. As construction materials become more expensive, contractors are losing out. 

BACI called for price escalation of government projects considering the rise in prices of raw materials.

Chairing the meeting, The FBCCI President Md. Jashim Uddin called for resolving the problems in the construction sector through mutual cooperation and dialogue.

Responding to his call, the meeting decides that the entrepreneurs of the two sectors would sit in discussion every three months.

Mir Nasir Hossain, former president of FBCCI, joined the meeting online. Also present were FBCCI Senior Vice President Mostofa Azad Chowdhury Babu, Director Engr. Ghulam Mohammed Alomgir, Secretary General Mohammad Mahfuzul Hoque, BSMA President Manwar Hossain and BACI President Shafiqul Haque Talukder.