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Material prices skyrocket, contractors are afraid to ‘make high prices, pay low prices’

Questioning the Minister of Transport Nguyen Van The, representatives Duong Minh Anh (Hanoi) and Tran Quang Minh (Quang Binh) asked about the local scarcity of raw materials in road traffic projects, causing contractor has difficulty. “When will this problem be solved?”Mrs. Anh asked.

Minister Nguyen Van The replied that recently, due to the influence of gasoline prices, the war situation between Russia and Ukraine, the price of construction materials increased dramatically. The two ministries of Transport and Construction have reported this matter to the Government.

“We have coordinated with the Ministry of Construction to report to the Prime Minister. Recently, the Ministry of Construction has also organized 7 inspection teams at construction sites.”Mr. The said.

Material prices skyrocketed, contractors were afraid to 'make high prices, pay low prices' - 1

Minister Nguyen Van The answered about price fluctuations of construction materials. (Screenshots)

Currently, according to regulations, the local price announcement is after 1-3 months. There are 37 localities that announce monthly prices, the rest are announced every 3 months. Mr. The suggested that localities announce prices once a month to update price fluctuations more timely.

All big projects sign contracts according to price adjustment, timely notification will make the adjustment more timely. However, the fact that the price fluctuates quickly and the operating mechanism is slow should more or less affect investors and contractors.

“We want to announce the price once a month, but so many materials fluctuate, putting great pressure on the local Department of Finance. We will work with the ministries to handle the best, and handle it thoroughly. It is very difficult because the price of construction materials is affected by the price of gasoline and the world market.”Mr. The said.

Minister The also said that all projects, including large projects, have a price adjustment mechanism.

“But the question is whether the adjustment is timely or not, that is, the coordination between ministries, sectors and localities in adjusting price fluctuations. Because when deploying contractors, they have the mentality to buy gasoline and raw materials. , shipping prices are high, but until acceptance, payment and settlement prices are low. The payment, settlement and signing of contracts will be based on local price notices.”Minister Can explained.

Therefore, Mr. The said that the coordination of ministries and sectors is important, but the announcement of local prices is more important, if the locality informed closely and promptly, the payment to the contractor would be good.

“Contractors are afraid of making high prices, being paid low prices by market price is fluctuating continuously. This we have understood and have coordinated with ministries, sectors and localities. We hope that the National Assembly will accompany the Government to consider and have a mechanism to ensure fairness for contractors, timely adjustment of prices and especially price announcements.”Mr. The said.

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