Contractors report 70% rise in materials prices as dollar soars

Egyptian building contractors have reported a 70 percent surge in the prices of building materials and related commodities, attributed to a recent hike in the US dollar’s black market prices that stood at LE7.78, Egyptian building contractors said.
Daker Abdellah, a member at the Egyptian Businessmen’s Association (EBA) and the Egyptian Federation for Construction and Building Contractors (EFCBC), said in a statement on Thursday that several materials needed for projects, such as water, drainage and electricity stations are being imported from abroad and paid for in dollars.
According to Abdellah, the dollar surge affects the pace of projects’ implementation, adding that the law obliges the contracting side to compensate contractors for price increases that occur during the contracted period. He noted that the government will have to assume the cost for delays in the implementation of projects based on the law.

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