Middle East crisis fuels fresh construction cost surge | Construction Enquirer News

A joint alert from the Builders Merchants Federation and Construction Products Association reveals the conflict is driving a sharp rise in transport and production costs across the supply chain. Merchants, house builders and contractors say surcharges are already landing with little warning and limited justification, adding further uncertainty to pricing at tender stage. According to the Construction Leadership Council’s material supply chain group, steel is now a key flashpoint, with prices moving so quickly that some firms are struggling to secure firm quotes, making project pricing increasingly difficult. Fuel prices have jumped rapidly, with diesel up by over 20% in recent weeks, hitting plant hirers and civils contractors compounding already tight finances after months of wet weather. Manufacturers and distributors warn that the fuel spike is feeding through into delivery costs and is expected to persist even if tensions ease. At the same time, energy prices are climbing fast, creating immediate pressure on manufacturers of energy-intensive materials such as cement, bricks and steel. While some firms are temporarily shielded by hedging, the increases are expected to filter through into higher material prices in the coming months. “In the mechanical engineering sector, commodity prices such as copper were already increasing before the conflict, and steel is now the biggest concern. “The government’s newly published steel strategy is also creating uncertainty. While the...