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Construction body ranks Zambia’s rates among highest in region

Construction body ranks Zambia’s rates among highest in region
By Fridah Zinyama
Wed 21 Apr. 2010, 04:50 CAT

Stanbic Bank Zambia has embarked on the master piece construction of the the Bank's head quarters along Addisa baba road in Lusaka , The building will be completed in April next year, here contruction is under way-Picture by Collins Phiri

THE National Council for Construction (NCC) has said the cost of construction in Zambia is one of the highest in the region.

According to NCC executive director Dr Sylvester Mashamba, it has been realised that the construction industry rates keep rising and compared to the region, Zambia has been the highest so far.

“It is understandable for rates to rise as certain costs such as fuel and other inputs that go into construction works rise, but the rise in the costs has been too drastic for the Zambian industry,” he said.

Dr Mashamba said the other factors that may cause the increase in unit rates could be attributed to the absence of the competition for jobs, in that there were few contractors who may carry out a particular job that has been put out to tender.

“In Zambia the rise in unit rates in the last three to four years could have been attributed to the following factors, increase in fuel costs, banning of 42 contractors, banning of advance payments and shortage of cement,” he said.

To this end, the council is undertaking a study on construction unit rates in the Zambian construction industry to empirically establish the key factors that go into the ever increasing construction unit costs in this country by comparing these with those within the region like Zimbabwe, Botswana, Tanzania and South Africa.

Dr Mashamba said after the study, a model for construction unit rates analysis would be put in place to analyse such issues.

Labels: CONSTRUCTION, INFLATION, NCC, STANBIC, SYLVESTER MASHAMBA

posted by MrK @ 3:41 PM