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Price hikes slow work on building projects
The unexpected shortage of construction materials, including sand and stone, has caused prices to climb, slowing down progress on several public construction projects.
Road projects in localities in the Mekong River Delta region and in the north lack sand and stone, according to the Ministry of Transport .
As a result, several contractors ease construction speed on their projects and recalculate costs to account for costs of sand and stone, which have gone up by several times compared to the period when they began their projects.
In the north, which is known for having an abundance of construction sand and stones, work on several projects has slowed to a standstill following a shortage of sand and stones.
A representative of the management board of the HCM City Road Project, who declined to be identified, said construction work on many projects was facing difficulties due to a severe shortage of the same materials.
Some companies have had to pay an additional billion dong for materials, four times higher than the price in their original contracts.
Prices for construction materials are different at localities depending on the location of the project, according to a representative of Truong Son Co., Ltd, which specialises in trading building materials.
If the location is not near roads, materials sold to them are priced higher due to higher transportation costs, the company said.
Experts blamed the shortage on poor management by local governments of illegal exploitation of sand and speculation by building material trading companies.
In addition, local authorities have granted permits to companies to exploit stone in larege stone pits with old technology.
As a result, they have been unable to meet the huge demand of stones for construction.
To cope with the situation, some contractors are looking for new stone pits and sand.
They also plan to ask the Government to promote more production of building materials in localities and build a material zone for the construction sector so that companies can invest in modern technology to meet the demand of sand and stone for construction.
Contractors also plan to ask the Government to punish individuals and organisations involved in speculation, an activity that has created an artificial shortage of materials and raised prices.
vietnamnews
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