Qatar construction costs to be 18% higher by 2017
Costs will impact contract award values, peaking at $40bn in 2017
The Tender Price Index for Qatar, prepared by MEED Cost Indices, predicts that construction costs in Qatar will be 18% higher than current price levels by 2017.
The rise in costs will place a strain on Qatar’s supply chain and ultimately have an impact on the value of contract awards from 2013 onwards, reaching a peak of $40bn in 2017.
According to MEED’s special report on Qatar, the organisation charged with ensuring steady supplies of basic materials for the construction industry, Qatar Primary Materials Company (QPMC), has already secured imports by signing supply contracts with quarries in the UAE and Oman.
The report states further that, with supplies secured and a port capable of handling and processing them, Qatar should be able to ensure that the contractors working to deliver the infrastructure for the 2022 World Cup do not experience shortages or drastic price increases.