17.05.2022
Completion of construction, both in the private and public sectors, is in limbo as a number of factors, including the pandemic, the Russian invasion, and a surge in the cost of energy and raw materials, have led to a sharp increase in the cost of construction, which is assumed by contractors.
Great Uncertainty
The position of OSEOK President Stelios Gabriel was typical in that rising inflation, a huge and unprecedented rise in such a short period of time, as well as long delays in the supply of raw materials and materials in general from abroad, put the construction industry in great uncertainty.
“The possibility of non-completion of existing contracts, both in the private and public sectors, is clearer than ever,” Mr. Gavriel warned.
Increase in cost, shortages and delays of goods
Speaking at a conference of the Pan-European Federation of Manufacturers last week, the President of OSEOK noted that the construction sector is still facing the consequences of restrictive decrees, which as a result have affected the supply chain, a surge in the cost of purchasing materials and transport, as well as a lack of materials on the market.
The consequence of this situation is an increase in the overall cost of projects and a delay in their completion, while the contractor companies are required to bear additional costs, which is not always possible.
However, it is noted that despite the impact on construction and unprecedented market conditions, the sector continues to generate 6.1% of Cyprus’ gross domestic product (GDP).
