Construction industry pushes for price adjustment reforms amid soaring material costs
The backdrop is the market disruptions caused by the Iran conflict. Since the start of the war, the price of bitumen has in some cases doubled, explained Jürgen Faupel, vice president of the German Construction Materials, Machinery, and Mining Association (BVMB), at a meeting of the Roads and Bridges Working Group near Frankfurt.
With around 80 representatives from the construction industry and public sector in attendance, there was broad agreement that existing regulations are no longer sufficient. BVMB Managing Director Daniel Jonas pointed out that sharp price fluctuations are now occurring more frequently—similar to the volatility seen during the coronavirus pandemic and after the outbreak of the Ukraine war.
For this reason, the BVMB is advocating for a permanent and simplified price adjustment mechanism that accounts for not only building materials but also labor and equipment costs. The association proposes making this a standard feature of construction contracts to provide greater planning certainty and a fairer distribution of risk.
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