The price of construction materials increased sharply, the construction industry faced many difficulties!
In the mid-week days of March, 2022, the price of most construction materials increased by at least 15%, especially some types increased by 50%. Due to the "galloping" increase in material prices, the total construction cost increased by 20-30% compared to the same period last year.
Basic construction items such as iron and steel, bricks or cement are witnessing a sharp increase in prices at many stores. The reason is mainly due to the increase in gasoline prices, causing the cost of transporting construction materials to increase, many shop owners also increase to compensate.
Some stores said that despite the increase in prices, many retail customers still increased their orders because they were worried that the price of construction materials might fluctuate higher in the near future.
(Illustration image - Photo: CC105)
Recorded from suppliers and major construction contractors, the price of materials has simultaneously increased compared to the end of last year such as the price of concrete increased by 3%, aluminum and glass increased by 15%, cement increased by 8%, bricks and sand by 2%. Most worryingly, the price of iron and steel has increased by 4% while this is the main component in construction.
The high price of materials causes contractors to consider carefully when facing package contracts or to negotiate with investors to share risks. With rising costs and thinning profit margins, construction companies must also take measures to limit the impact of price fluctuations.
However, because the cost of construction materials accounts for about 65 - 70% of the estimated cost of construction, the increase in the price of construction materials has been directly affecting construction investment costs and efficiency. many projects.
