Construction companies are absorbing surging material costs

SINGAPORE, March 16 — Construction companies in Singapore are absorbing surging material costs to keep projects on track, as the ongoing war in Iran drives oil prices higher and disrupts supply chains. The Singapore Contractors Association Limited (SCAL) reported that prices of key materials have risen about 20% and are expected to remain elevated. Transport and machinery firms face losses of up to S$1 million monthly.

Construction companies

Petroleum-based products such as waterproof membranes, paint, and sealants have become significantly more expensive following disruptions at the Strait of Hormuz. Eastern Win, a construction material wholesaler, is building buffer stocks to mitigate short-term shortages, though its business head Sylvester Lim warned of risks due to limited shelf life. Stockpiling could raise costs by 15%, he said, but careful planning is essential to avoid project delays. Lim added that prices are unlikely to return to pre-war levels soon, with recovery dependent on demand and project volume.

SG Business

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