The price of steel, aluminium and other building materials is soaring by the day, making it almost impossible for construction companies to price jobs any more than a week in advance, according to the College of Surveyors & Technical Architects, or COATT.
“Budgets get out of date quickly, profit margins are lost and if a client waits two weeks to accept a quote the price of materials can be 20% more expensive, said College President, Luis Alfonso de León.
The College has published the 44th edition of its Construction Price Book, which helps builders to prepare simple budgets.
Between 2006 and 2021 there was a considerable increase in the price of construction materials and in most cases they were well above the Consumer Price Index prices.
In the last 15 years the CPI has increased by 22.8%, but during that time, the price of steel has increased by 60.7%, bricks by 49.3% and concrete by 18.8%.
In the last year, prices have soared by 100% for copper; 30% for wood and steel; 78% for corrugated steel; 56% for aluminium; 85% for bituminous mixtures and 70% for PVC pipes.
In most cases, these price increases have completely blown the budget.
On top of that, builders are having to deal with delivery delays which can make it impossible to meet deadlines which means contractors face penalties for projects that are not finished on time.
The shortage of raw materials also affects joiners, metalworkers and plumbers and the sale of electrical appliances.
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