Builders, raw material producers to sit every 3 months

Construction companies and raw material producers in a meeting with the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) recently decided to meet on a quarterly basis to maintain stability in the construction sector.

The sector is facing an adverse impact of steel production turning costly, mainly due to skyrocketing prices of scrap steel and chemicals, the main raw materials, alongside freight cost and container rent in the past two years, said the FBCCI.

The issues came up at the meeting among the FBCCI, Bangladesh Steel Manufacturers Association (BSMA) and Bangladesh Association of Construction Industry (Baci) at the FBCCI office on February 2.

The country's construction companies are struggling to implement development projects within initial budget estimates due to the increase in expenditure, said the BSMA and Baci leaders.

The price of locally produced rod has rationally increased with the rise in international market prices of raw materials, informed the BSMA leaders.

The price of scrap steel rose 79 per cent, resulting in overall production costs to increase by 52 per cent, they said.

In contrast, the selling price has been increased by only 37 per cent, they said, adding that this had forced rods to be sold at loss-inducing prices in most cases.

On top of this, if construction companies are allowed to import rods, the domestic industry will suffer and a large number of people will lose their jobs, they said.

Highlighting the situation, the BSMA demanded a reduction in all existing duties and taxes on scrap steel.

Public procurement rules and Central Procurement Technical Unit-issued gazettes allow price adjustments in government projects, said Baci leaders.

But most government-funded projects do not include price adjustment clauses in their contracts, they said, calling for cost figures in government projects to be raised in tune with international market trends for raw materials.

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

Mir Nasir Hossain, former president of the FBCCI, joined online while Mostofa Azad Chowdhury Babu, senior vice president of the FBCCI, Ghulam Mohammed Alomgir, director of the FBCCI, Manwar Hossain, president of the BSMA, and Shafiqul Haque Talukder, president of Baci, were present among others.