The number of tenders abandoned during construction increase 9% in El Salvador
The main cause of this increase is the rise in start up costs presented in the contracts, due to the increase in the price of raw materials.
Wednesday, October 22, 2008
The rise in the price of construction materials forces modifications to budgeted amounts. Some 7,500 jobs have been lost, according to CASALCO. Up to September the construction industry reported 23% in abandoned public tenders, a 9% increase from 2007.
The construction sector grew by 3% in the first quarter of 2011, the first positive change since 2007.
Business unions complain that excessive red tape complicates the country’s economic recovery.
The decline in credit is affecting both the execution of projects and home sales, resulting in a stagnation for this sector.
The construction industry in El Salvador is feeling the impact of the current economic crisis.
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