Contract value drops to 40 p.c.
Published On January 13, 2016 » 1317 Views» By Bennet Simbeye » Business, Stories
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By KENNEDY MUPESENI –
THE total value of contracts reduced by 40 per cent in 2015 due to price escalations and unstable exchange rates in the country, Association of Building and Civil Engineering Contractors (ABCEC) has said.
Association president Michael Nyirenda said unstable exchange rates coupled with price hikes for materials eroded the value of running contracts by 40 per cent.
“Building many infrastructure may not be completed due to price escalation and unstable exchange rates which have eroded the contract value by almost 40 per cent,” Mr Nyirenda said.
He said this in a statement released to the Times of Zambia in Lusaka yesterday.
Mr Nyirenda said contractors were ending up subsidising clients.
He urged the Government to ensure that fluctuation clauses for all new contracts were introduced to cover for changes during the execution of the contracts.

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