DPE to issue price index for building materials

Abu Dhabi, July 20, 2008 (WAM) - The statistics section at the Department of Planning and Economy (DPE) is planning to issue general price index for basic building materials similar to the commodity price index issued recently to curb the manipulation of prices by some traders.

According to a statement issued by the section, the building materials' price index will include 22 articles, constituting 90 per cent of basic construction materials.

The price index will help in denoting periods of price stability or hiking in a way that makes project owner and contractor aware about soaring of prices and their percentages.

"The building materials' price index will expose traders who manipulate prices in this vital sector amid the current economic boom in Abu Dhabi in particular and the UAE in general- the boom that triggered hike of the building material prices. Soaring fuel prices and international high transport cost also contributed in increasing prices of many basic construction material prices", it added.

The statement noted that the issuance of the price index would enable
project owners to assess beforehand cost of their projects, a thing that would limit constant quarrel between project owners and contractors.

As per the statement issued by the section, the building material prices fluctuated over the last months. The round bar iron soared in June by 4 per cent, spiral iron was up by 17 per cent and iron pipe for underground rose by 19 per cent compared to May, while the other prices of building materials were stable compared to month of May.