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.
"These (higher costs) were being absorbed up to now by the companies, but it has caused more than 23% in abandoned tenders in September,"said Ismael Nolasco, executive director of the group.

More on this topic

Slow Recovery for Salvadoran Construction

October 2011

The construction sector grew by 3% in the first quarter of 2011, the first positive change since 2007.

According to the Central Reserve Bank (BCR) in the first three months of the year, gross domestic product (GDP) in the sector rose by 3%.

Ismael Nolasco, executive director of the Chamber of Construction Industry (CASALCO), said, "Since 2007, we have not been positive, only in the third quarter of 2009 have we reached 0.7%."

Salvadoran Bureaucracy Hampers Home Building

June 2010

Business unions complain that excessive red tape complicates the country’s economic recovery.

The Social Housing Fund has 93 projects pending authorization, including private and public initiatives.

The Salvadoran Construction Industry (Casalco), estimates that it takes 18 months to complete the required paperwork, stating that this adds considerable costs to any project.

Construction sector in El Salvador becomes stagnant

October 2008

The decline in credit is affecting both the execution of projects and home sales, resulting in a stagnation for this sector.

The optimism that the construction sector could achieve acceptable growth, present until last March, has vanished. The US economic crisis and its related effects have already begun to impact this sector of the economy.

El Salvador faces construction slowdown

July 2008

The construction industry in El Salvador is feeling the impact of the current economic crisis.

Housing projects have declined in number according to Ismael Nolasco, executive director of the guild in this sector.
The executive of the Salvadorean Chamber of the Construction Industry says that if obstacles are look at sector by sector, "There are problems for the small and medium-sized companies for developing housing projects."

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