Abu Dhabi eyes construction price index
Abu Dhabi, July 19, 2008
Abu Dhabi plans to launch an index tracking building material prices to limit price manipulation amid soaring construction costs, the Gulf emirate's economic development said on Saturday.
The price index will include 22 items, comprising 90 percent of basic construction materials, the official news agency Wam reported, citing a report by the statistics section of Abu Dhabi Department of Planning and Economy.
The index will help in the early assessment of project costs, a step that could limit disputes between project owners and contractors, the report said.
The index will indicate periods of surge and stability in construction prices, which would help inform contractors and project owners identify the increase rate and reasons for price fluctuation, it said. It will also help identify building material suppliers who manipulate prices.
The report attributed the rise in the cost of basic construction materials to an economic boom in the emirate and the United Arab Emirates, the world's fifth-largest oil exporter, surging fuel prices and high global transport costs.
The department said earlier this month it had started tracking prices of 53 commodities, mainly food, to keep better track of inflationary trends in the emirate.
Inflation in Abu Dhabi hit 11.7 percent in 2007 and eased to 11.5 percent in March, official data showed this month.-Reuters