Contractors hit by sand ban to get help
Govt also plans to help importers unable to sell off raw materials
CONTRACTORS facing a cash-flow crunch for the past three months as a result of the Indonesian sand ban will likely get help soon.
Developers, in their clearest commitment so far, have responded to the call by the Government to share costs with contractors.
The details are now being worked out.
Indeed, the various players in the construction industry say that - as a result of steps taken by the Government and others - the situation will likely stabilise from now on.
Contractors, committed to completing projects when Jakarta abruptly imposed the ban in February, were hit with cash-flow problems. On top of supply shortages, raw material prices also shot up.
The Government pledged to compensate contractors for up to 75 per cent of the hike in construction cost of public projects. But many feared big losses for private-sector projects.
On Thursday, National Development Minister Mah Bow Tan said at an industry event that he was happy that ‘private sector associations have reached an in-principle understanding on cost-sharing’.
Mr Chang Meng Teng, chairman of the Construction Industry Joint Committee, which represents contractors, said details on an agreement are being finalised.
Mr Chia Hock Jin, executive director of the Real Estate Developers Association of Singapore, added that both parties were looking into the possibility of establishing a kind of benchmark.
‘However, we must leave room for adjustments as developers vary in size, and so do their projects.’
Mr Kenneth Loo, general manager of Straits Construction, said contractors have accepted the fact that pre-ban prices were long gone, but he was glad prices have stabilised over the last month.
Meanwhile, importers too have reason to cheer.
Mr Mah said on Thursday the Government will buy raw material from importers at a certain price if they are not able to sell it due to lower prices, as a result of market fluctuations.
New players in the market, Mr Anthony Seet and Mr T.H. Ng, of Teelek Trading, whose first shipment from Cambodia arrives next week, said this guarantee has boosted importers’ confidence in securing sand from different sources.
One thing, though, is for sure: the Building and Construction Authority (BCA) wants diversification, and is looking to produce ‘NewConcrete’ to reduce the reliance on sand and granite.
It told The Straits Times it is working with a ready-mix concrete company to produce and test this ‘NewConcrete’, which comprises copper slag as a 70 per cent substitute for natural sand, and recycled coarse aggregates as a substitute for granite aggregates.
Projects will be identified to try the new concrete for non-structural works like linkways and park connectors.
Source : Straits Times - 12 May 2007
Loading ...
Post a Comment
Tell me a bit about yourself; who you are, where you're from, what information you would like to see on this site. As I continue to provide you with Singapore property happenings, your feedback will encourage me to post more frequently. Thank you.