With the onset of the new year, prices of construction materials touched a new high which could also escalate the cost of mega-development projects up to 30 per cent.
After the sharp increase in the prices of the construction material, contractors, who are currently working on government-sponsored development schemes, have also asked for additional funds from the institutions concerned.
Sources said that the estimated cost of new development projects has also increased and it has been decided to put up new project costs for all development schemes.
Due to the high cost of building materials, the construction cost of houses has also increased. The cost of a five-marla house has increased up to Rs0.3 million. The construction cost of a five-marla double house will now cost over Rs1.5 million.
According to the market survey, in the last two months, the price of steel increased from R0.175 million to R0.210 million tonnes.
The price of a cement bag increased from Rs900 to Rs1150, sandbag from Rs2,700 per to Rs3,600 per trolley, crush (Bajri) from Rs4,000 to Rs4,700 per trolley and bricks from Rs10,000 to Rs13,000 per trolley.
Similarly, the labour for shuttering of a five-marla house has increased from Rs27,000 to Rs40,000. The labour cost of roof and plaster of a five-marla house also increased from Rs35,000 to Rs50,000.
Prices of plumbing materials for sewerage, washrooms and kitchens increased by 30 to 35 per cent in the current year. Meanwhile, steel doors and window prices have shot up by 40 per cent and wooden windows and door prices by 45 per cent.
Several kiln owners and gravel dealers have already sounded the alarm for the price increase of everything. In mid-January, the price of bricks is expected to increase by Rs500 to Rs700 per thousand, while the price of gravel will increase by Rs300 to Rs500 per trolley.
The rise in prices of building materials will discourage construction and daily wagers will bear the brunt as they will lose the opportunity to get work.
Meanwhile, the contractors of the Rawalpindi Metropolitan Corporation, the district council, the tehsil council, different departments and Cantonment boards have also demanded to revise their budgets for construction work.
According to Contractors’ Association Vice-president Zulfiqar Satti, a huge increase in the prices of building materials has been witnessed in the last three years. He said that no development scheme could be carried out at the old rates.
Due to an increase in the cost of construction materials, the estimated cost of the Katchehry Chowk underpass has increased by 25 per cent.
Published in The Express Tribune, January 3rd, 2023.
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