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SINGAPORE: Some construction firms are absorbing higher material costs to keep projects on schedule, as prices surge amid the ongoing war on Iran, said the Singapore Contractors Association Limited (SCAL).<\/p>\n
Prices of some construction materials have increased by about 20 per cent and are expected to remain high.<\/span><\/p>\n Some transport and machinery companies are expecting losses of up to S$1 million (US$780,500) per month, the association added.<\/span><\/p>\n Crucial materials such as waterproof membranes, paint and sealants – which are petroleum-based – have become more expensive as oil prices surge\u00a0<\/span>following disruptions at the strategic Strait of Hormuz.<\/span><\/p>\n Construction material wholesaler Eastern Win, for instance, is investing in a buffer for short-term disruptions, while keeping in mind the one-year shelf life of such materials.<\/span><\/p>\n \u201cStockpiling is something that we have to study and do carefully, because if we stock too much, there’s a risk of it going bad and we have to throw it away, and that (adds) costs to our bottom line,\u201d said the company\u2019s business head of construction Sylvester Lim.<\/span><\/p>\n \u201cWe have to plan our safety stocks carefully – and the reason we do safety stocks is because we must be able to supply to our customers when they need it. Otherwise, the construction timeline \u2026 will be extended.\u201d<\/span><\/p>\n Building up buffer stock could raise costs by up to 15 per cent for the firm, Mr Lim added.<\/span><\/p>\n