Indian Buildings Congress (IBC) and Builders Association of India (BAI) the apex bodies of construction industry in the country has written to the Prime Minister Narendra Modi and Union Finance Minister Ms N Sitharaman to provide relief to the infrastructure sector contractors in the country due to unusual steep price rise of major construction raw materials including cement, bitumen, steel, aluminum, diesel and copper in the recent months.
“The infra and construction industry which had just risen from the pandemic lockdown is suffering due to steep rise in prices of basic raw materials .The increased prices coupled with supply constraints, are impacting construction timelines. Prices of key raw materials like steel, cement and bitumen have risen significantly in the last one year, which poses challenges for several sectors, especially infrastructure and real estate. These two are still reeling from the impact of the pandemic and the ensuing lockdowns. Industry looks forward to appropriate steps by concerned government authorities.” Said Mr Vijay Singh Verma , President, Indian Buildings Congress (IBC)
“The government has been focusing on ‘Make in India’ and ‘Atmnirbhar Bharat’ campaigns wherein many infrastructure contracts in government sector may end up in failure under the pressure of very steep price rise of major construction materials such as cement, steel, diesel, aluminium and electrical copper wires unless a assuaging package for compensating extra cost is given to the distressed contractors wherein provisions for payment of star rate payment i.e. flat difference of cost owing to price different is not in the contract agreements” said Mr K K Kapila, Pasty president of Indian Buildings Congress (IBC) and Asia Pacific ambassador for FIDIC the global body of consulting Engineers .
“Various associations of contractors and builders in desperation, has approached various heads of the governments for relief, otherwise they will go bankrupt and the contract will fail, knowing fully well that the executives and bureaucracy cannot take any such step forward in favour of contracting communities by themselves. The Builder Association of India, in their submission to the Honourable Prime Minister of India and Honourable Finance Minister, Government of India have provided enough proof and detail analysis in support of their cause and to how steep price rise is adversely impacting their prospects of survival and success of the infrastructure projects. “ said Mr Kapila.
“Steel, Cement, Bitumen, Diesel, etc.The various State Governments have a number of policies in its construction related model agreements which lack clarity. Attempts have been made by Builders Association of India (BAI) to bring it to the notice of the Government from time to time but no exact solution has been reached yet” said Mr Nimesh Patel, president , Builders Association of India in a letter to the Prime mInister .
“BAI has urged the government to look into various problems being faced by the construction industry in the country including Unbearable price increase due to Covid epidemic disaster, reimbursement of GST surcharge on ongoing works , the cost of tenders is subject to GST , matter of updating Schedule of Rates (SOR) , Standard Bid Document (SBD) (Balance Contract) and Reimbursement of increased price of construction materials on actual basis.” Said Patel
“BAI has about 25,000business entities as members and 200 branches across the nation. Our all branches have written to the state governments and various project authorities including NHAI, NHIDCL an MORTH to find a workable solution as any increase of construction material price will have consequential effect on the cost of housing and also will affect the infrastructure projects adversely, causing huge negative impact on the national economy. “ said Mr Patel