Building material prices increase sharply
20 businesses operating in the construction sector in Quang Ngai have signed a collective petition sent to the Provincial Business Association, requesting to remove difficulties for construction businesses.
According to leaders of these businesses, the shortage of common materials such as construction sand, stone and filling soil is happening in many localities due to slow mine planning and mineral exploitation licensing procedures.
Many mines have run out of output or closed; some mines are still being exploited but with very low capacity, not meeting construction needs. Meanwhile, raw material prices fluctuate continuously, but the announcement of construction price indexes in some localities is not close to reality or not timely, causing contractors to bear the risk of large losses when receiving package contracts.
For example, the price of embankment land according to the announcement of Quang Ngai Department of Construction is 33,180 VND/m3, but the actual market price is currently up to 42,000 VND/m3, an increase of 126%; 1x2 crushed stone, the announced price of the Department of Construction is 245,454 VND/m3, but the current market price is 460,000 VND/m3, an increase of 188%; PC40 cement, the announced price of the Department of Construction is 1,200,000 VND/ton, but the selling price on the market is 1,600,000 VND/ton...
The announced transportation unit price, machine and construction equipment price are lower than the market price, which is one of the most serious "bottlenecks" causing construction contractors to struggle, falling into a situation of making more and more losses.
The actual cost of many projects increased by about 10% - 30%, depending on the type of project. Package contracts and fixed unit prices are difficult to promptly reflect abnormal market fluctuations, increasing the risk of losses for contractors.
Amendment contracts are affected because the Department of Construction's price updates are not timely compared to market prices; the unit price of the previous quarter is applied to the next quarter. As a result, businesses have to construct sparingly, reduce labor; project progress and public investment disbursement are affected.
Besides, there is also a major "bottleneck" regarding site clearance and land. The application of the compensation, support, and resettlement process according to the Land Law requires many strict steps, leading to longer procedure preparation time than before.
The handed-over site is not continuous, the work of determining the origin of land, inventorying assets and approving land prices encounters many local obstacles. The situation of unsynchronized site handover (contractors have land to construct in a fragmented, intermittent manner) has caused projects in the area to fall into an unfinished state.
Proposing the Provincial People's Committee to implement fundamental solutions
Through the Provincial Business Association, leaders of 20 businesses operating in the construction sector proposed that the Provincial People's Committee direct the acceleration of licensing procedures, extension and exploitation capacity increase for soil, rock, and sand mines that still have reserves but are being exploited limitedly or temporarily suspended.
Review and put more new material mines into operation to ensure supply, avoid scarcity and monopoly of material sources. Prioritize ensuring material sources to serve key projects and public investment projects, contributing to accelerating construction progress and disbursement.
Strengthen inspection and control of prices of materials and construction materials on the market, promptly detect situations of hoarding goods, limiting supply sources or not cooperating in supply when prices do not meet suppliers' expectations. Control intermediate and circular forms of buying and selling, such as separating materials prices and transportation costs or supplying materials through many different units to increase actual prices, cause difficulties for businesses and distort the price level.
Resolutely rectify the situation of applying materials prices that are not realistic, not the right types, comparing low prices to prepare estimates based on materials that do not ensure reserves and quality, reducing project costs, leading to package prices not being sufficient to implement, construction contractors losing money, prolonging progress or no contractors participating.
