Govt to share sand cost by next month
March 30, 2007, 9.55 pm (Singapore time)
Govt to share sand cost by next month
PAYMENTS to help contractors cope with the increased cost of building materials may begin within the next month, the National Development Minister said yesterday.
Mr Mah Bow Tan added that the Government is discussing the issue with developers, contractors and concrete makers.
The Government had earlier committed to paying up to 75 per cent of the increased costs for public sector projects. Said Mr Mah: 'Because many of them are individual contracts, it's difficult to take a one-size-fits-all solution.'
The spike in prices of sand and granite aggregate came about after Indonesia banned the export of land sand in February and detained barges carrying granite to Singapore.
The price of ready-mixed concrete - which consists of sand, aggregate and cement - has nearly tripled, from $70 per cubic metre before the ban to around $200 now.
Asked whether ongoing projects such as the integrated resorts have slowed because of the situation, Mr Mah said developers had not reported any effect on critical parts of their projects.
The president of the Singapore Contractors Association, Mr Desmond Hill, told The Straits Times earlier this week that contractors are still bearing the increased costs of concrete in full, with no compensation from developers.
Higher costs: Govt help likely by next month
March 31, 2007
SAND, GRANITE SUPPLY WOES
Higher costs: Govt help likely by next month
PAYMENTS to help contractors cope with the increased cost of building materials may begin within the next month, the National Development Minister said yesterday.
Mr Mah Bow Tan added that the Government is discussing the issue with developers, contractors and concrete makers.
The Government had earlier committed to paying up to 75 per cent of the increased costs for public sector projects. Said Mr Mah: 'Because many of them are individual contracts, it's difficult to have a one-size-fits-all solution.'
The spike in prices of sand and granite aggregate came about after Indonesia banned the export of land sand in February and detained barges carrying granite to Singapore.
The price of ready-mixed concrete - which consists of sand, granite aggregate and cement - has nearly tripled, from $70 per cubic metre before the ban to around $200 now.
Asked whether ongoing projects such as the integrated resorts have slowed because of the situation, Mr Mah said developers had not reported any effect on critical parts of their projects.
The president of the Singapore Contractors Association, Mr Desmond Hill, told The Straits Times earlier this week that contractors are still bearing the increased costs of concrete in full, with no compensation from developers.
TAN HUI YEE
