Construction industry’s consumer index prices in offing

THE National Construction Council (NCC) will in the coming financial year issue a monthly consumer index prices for construction industry’s labour wage, building materials, machineries and equipment to control fluctuations.

Speaking to reporters here on Tuesday the NCC Chief Executive Officer, Dr Matiko Mtuki said they were in final stages in completion of the construction sector cost guidelines as well as indicative pricing for the contractors.

The move, he said, were among the projects listed for implementation in 2022/23 financial year for a vibrant sector development.

“As of January 31, this year, we have collected indicative prices of the building materials to check the market trends before we officially start issuing them monthly,” said the NCC Boss.

He said they were also finalizing guidelines on indicative costs for road construction in the country and contractors pricing per region in the mainland.

According to their projection, he said, the guidelines are expected to be implemented in 2023/24 financial year.

Consumers need to have various information guiding the construction industry stakeholders on building material prices.

“They will serve as guides for estimating building materials prices, labour costs, among others, for providing the basis of price negotiation on the labour wage rates between the project owners and the main contractors, and between the main contractors and their subcontractors,” noted Dr Mtuki.

The index prices will be a reference or yardstick to the fluctuation trend of building labour wage rate for building contractors to calculate their risks intender pricing, thus being used as a tool to make judgment based on increased property prices.

He said NCC would keep on promoting and providing strategic leadership for growth, development and expansion of the construction industry in Tanzania with emphasis on the development of the local capacity for socio-economic development in the changing global environment.

“We envision to be an outstanding provider of strategic leadership for the development of a sustainable and internationally competitive Tanzania construction industry,” he insisted.

Dr Mtuki was confident on promoting and monitoring the development and implementation of standards, regulations and codes of practices on all matters related to the construction industry.

He urged stakeholders of the industry to keep on soliciting and managing the funds for training personnel, promoting quality management including provision of technical auditing services in the construction industry and facilitating effective resolutions of disputes in the construction industry.