LAHORE: Price hike - government contractors stop work
By Our Reporter
LAHORE, March 15: The city district government contractors have suspended work on all ongoing schemes due to increase in prices of construction materials and wages pending the review of rates.
City District Government Contractors Association office-bearers Tariq Waheed Butt, Khalid Sharif and Salahuddin Butt said at a press conference here on Monday that the review of the schedule of rates had become necessary because the price of iron had increased from Rs20,000 to Rs48,000 per ton and a 50-kilogram cement bag was being sold for Rs225 instead of Rs185. Bitumen price was also up by Rs5,000 per ton.
They said crush stone was being sold for Rs19 per cubic foot instead of Rs12, bricks for Rs2,400 per 1,000 instead of Rs1,700, Ravi sand for Rs500 per 100 cubic feet instead of Rs200 and daily wages of labourers and masons had increased from Rs80 and Rs140 to Rs160 and Rs300, respectively.
They said contractors could not afford to execute the works in accordance with the existing rates as not only the cost of materials and wages had increased substantially but they had to pay 5 per cent advance income tax and an equal amount for payments to supervisory staff of the projects in addition.
