The construction industry is often referred to as “hot”. According to statistics, volumes have not risen sharply, but construction costs are clearly rising sharply, especially the price of building materials.
“Given the sharp rise in construction material prices caused by the global pandemic, the implementation of construction projects is subject to unpredictable risks, where both the customer and the contractor may prove to be the loser. The solution requires the development and implementation of a construction price indexation mechanism.” It is encouraged by the Latvian Partnership of Construction Contractors.
How big is this problem, how construction companies deal with this situation, how the ministry supervising the industry evaluates the trends in construction and possible indexation, explains “Delfi Bizness”.
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