September 07, 2008

Coimbatore builders seek government intervention

It is reported that the construction industry associations in Coimbatore have sought immediate intervention of central and state governments to rein in the prices and break the steel and cement cartels failing which the user industries would take to the streets to protect the interests of the stakeholders. They also want the Tamil Nadu government to provide for a price escalation clause to be built into all contracts for infrastructure works irrespective of the duration for their execution.

Mr G Srinivasan chairman of Builders’ Association of India Coimbatore Centre said that the contractors were not able to complete the works they had taken up because of the continuous spurt in prices of raw materials. The absence of any escalation clause in the contracts entered into has been working to their disadvantage and the contractors were facing a panic situation.

He added that it is only recently the state government agreed to include a provision for cost escalation in contracts that had an execution period of more than one year, subject to certain conditions.