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Grappling with soaring prices
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Do we see a bleak future in the construction industry due to increase in material costs? A look by A.B. SUDHINDR
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The soaring prices of materials such as steel, cement and bitumen may jeopardise speedy implementation of important construction works. Members of the Karnataka State Contractors’ Association (KSCA) have threatened to stop work if the authorities do not bring an amendment to the Price Escalation Clause immediately. But their pleas have fallen on deaf ears.
The association president, S. Chinnaswamy Raju, said the members were apprehensive of undertaking works through tenders due to the uncontrolled prices and this had a debilitating effect. Many of the contractors either had become bankrupt or they were forced to switchover to other professions in view of the bleak future prevailing in the construction sector.
The major infrastructural works either have come to a halt or are progressing slowly, he said and added that this was a bad sign.
Association general secretary D. Kempanna said that Andhra Pradesh and Tamil Nadu have already brought in the amendment to facilitate speedy execution of construction works. “The contractors are executing works to the tune of Rs. 4,000 crore and they have employed around two lakh labourers,” said Mr. Raju.
Labourers’ plight
The moot point is what will happen to these labourers if contractors go ahead with their veiled threat to stop the works. It would be a major blow to the family of Yamunavva, who has migrated from dusty Yadgir in the Hyderabad-Karnataka region. She says about 10 families from her village have migrated to Bangalore to make a living and are all working as unskilled labourers. Life in the Garden City is comparatively better as they are able to have two square meals a day. Yamunavaa is not aware of the impending threat nor has she made an effort to know whether the contractor with whom her family works gets money in time from the authorities. Her family earns around Rs. 300 daily and she is content with that. “Life was hell out there in our village,” she rues. “No food to eat, no water to drink and no work either to make a living. I am planning to send my children to school next year,” she adds splashing water on the concrete road that is being built in Mahalakshmi Layout.
Conducive atmosphere
The contractors are aware of the plight of such labourers but they first want their condition to improve. “Some contractors have incurred heavy losses. A friend of mine had to sell his house to complete the works. The condition may worsen if immediate action is not taken. We urge the authorities to make provision for star rates to steel, cement and bitumen to provide the contractor the difference in rate as per the prevailing market trend,” says Mr. Kempanna.
The leaders of KSCA opine that the best way out is to control the prices of the raw materials; if not, the only alternative is to create a conducive atmosphere for the construction industry to thrive.
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Property Plus
Bangalore
Chennai
Hyderabad
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Thiruvananthapuram
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