Sunday July 6, 2008
Desperate times force contractors to turn down government jobs
RISING prices of building materials have started a tsunami in the construction industry. At least 200 contractors have returned their government jobs as they are unable to bear the escalating costs.
On the other hand, house buyers are worried that the rising costs would be passed on to them or their housing projects would be abandoned. The Government, meanwhile, is looking at ways of helping both the contractors and the public.
A house that cost RM100,000 to build will now cost about RM130,000 with the prices of all types of building materials up by 15% to 30% across the board.
Steel Bars: Now RM4,100 per tonne compared to RM3,500 in June.
Cement: Now RM13.45 a bag compared to RM10.95 last month.
Bricks: RM0.245 each compared to RM0.22 previously.
Ready mix concrete: RM190 per cubic metre compared to RM160 last month.
Copper: RM28,275 per tonne now compared to RM3900 three years ago.
Prices of other building materials such as sand have also gone up by 25%, quarry products by 30% and tiles by 22%.
Related Stories:
Housebuyers hope there won’t be delays
Builders cautious about starting new projects
Contractors return jobs for government projects due to rising costs
Ministry may cut tax to help developers cope
