The recent rise in the prices of construction materials has caused a crisis for contractors who concluded construction contracts ahead of the unexpected surge in prices, Al-Rai daily reported.
Contractors told daily that the recent surge in prices increased their cost by about 70 to 80 percent, as the cost of building the plot has reached about KD 210,000compared to KD 150,000 which was the cost earlier.
which means that the price crisis not only eliminated their profit margin but also caused heavy losses to many of them.
The building materials price crisis has left them with few options. Either they enter into negotiations with project owners to terminate the contracts they had previously signed by mutual consent while bearing the penalty clause for the termination, or renegotiate with the owners of plots and villas to reach a new settlement.