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Builders explore ways to keep costs low
View(s):“More than 600,000 have lost their jobs and most in the industry do not earn enough to cover their cost of living,” said Supun Abeysekara, secretary of the Labour Community of the Construction Industry.
Rising borrowing rates and price fluctuations make it incredibly difficult for contractors to take on projects, or to follow through, he said.
The prices of raw materials have soared. A bag of cement that cost Rs. 850 to Rs. 900 a few years ago has increased by up to 300% to Rs. 3,200. Similarly, the prices of PVC pipes increased from Rs. 2,500 to Rs. 7,500, and wire coils that were initially Rs. 1,700 increased to Rs. 8,500, he said.
Supun Abeysekera: Many professionals have left the industry
Susantha Liyanarachi of the National Construction Association of Sri Lanka (NCASL) said: “Many professionals and experienced people are quitting to find work overseas despite our country’s investments in them, and we are losing our most valuable assets required to run the industry.
“We are currently incapable of reaping the services of professionals, engineers and architects whom we educate and expend on because operations have stopped.”
The price fluctuations were drastic and severely affected projects. For example, contractors may estimate that a project would cost Rs 10 million but they end up completing it at Rs 25m, incurring a loss.
Contractors have resorted to several alternatives to mitigate price fluctuation: sometimes if it was required to build two floors in a project, they compromise, settle and finish the project with only one floor.
Cheaper alternatives are also negotiated with clients as a means to mitigate price fluctuation. For example, use titanium instead of floor tiles. Reducing their profit margins is yet another measure taken to mitigate price fluctuations.
The rise in the cost of raw materials has also paved the way for sub-standard items to come to the markets. For instance, the market has cheaper varieties of paint but the pails are not full. Similarly, river sand is mixed with beach sand.
These alternatives can be harmful and may cost more in the long run, warned Supurn Abeysekera of of the Labour Community of the Construction Industry.
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