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A construction expert has revealed that brick
Picture: Zambian Business Times
A construction expert has revealed that brick prices have declined amid stiff competition among block manufacturers, raising expectations of a possible reduction in the cost of other building materials.
Speaking in an interview with the Zambian Business Times – ZBT, MUV Construction Company Director Daniel Munvwimi observed that despite the reduction in brick prices, most other construction materials had largely maintained their previous prices.
“Despite the Kwacha appreciating, there isn’t much difference in the prices of materials. The only thing that has gone down is the price of blocks, and this should be attributed to competition in the market,” he said.
Munvwimi said sixinch blocks were now selling between K6 and K7, while eightinch blocks were priced at around K9, down from approximately K10 last year.
He, however, highlighted the impact of high material costs and price fluctuations on contractors, noting that these developments were eating into their profit margins.
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“The changes in prices eat into our margins because when we are pricing, we take everything into account. For example, if I have a fiveyear project, I will not price a bag of cement at K75, which is the current price. I will put it at K200 in case there is a demand and supply issue, so that we can still maintain the project despite price fluctuations,” he explained.
Munvwimi also raised concerns over the growing number of new entrants into the construction sector, alleging that some were not complying with Value Added Tax (VAT) obligations, allowing them to undercut established contractors.
“These people are undercutting the prices of those who are already established. We have set standards, but because someone is new and trying to attract customers, they may not have many statutory obligations because they are not charging VAT. “With individual clients, it becomes a challenge, but with institutions, VAT is accounted for because they are also conducting business on their end,” he said.
Article by Samuel Mutale
Source: Zambian Business Times — Read more
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