Minister orders prices' revision for building projects

The Algerian housing minister, Nouredine Moussa, ordered governors and officials in charge of the building sector to revise the prices to make them tally with the building materials costs’ hike.

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• The benefactors of this brand new measure are the building contractors who were designated to follow up different projects scheduled in 2008 along with those assigned to start projects in 2007 but recorded in 2008 budgetary year.
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• Projects prior to 2008 are counted out in the sense that constructional materials prices in 2007 were not that high.
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•  Moreover, several pools have been created to assure an appropriate distribution of building materials along with the putting into effect of a formula for the revision of prices concerning fixed contracts. Contractors who fail to observe their contractual duties will be punished by the law.
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• But the Building Contractors National Union denounced the local authorities’ attitude including governors who didn’t comply with the law because of the absence of an order in-law.
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• To remedy to this chaotic situation, the Union proposed another formula, which they believe more effective, that consists in a contract price to offset the costs’ surge agreed upon by all sides.
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• The Union is due to meet tomorrow to discuss the minister’s order.