Business News
The impact of the Middle East war on construction costs has been fundamentally misunderstood and exaggerated in many cases, a new study has found.
Quantity surveyor and project advisory firm WT Australia said the reality is that direct Middle East impacts vary significantly by project type, materials mix and supply chain exposure.
“Perhaps the major error has been the suggestion that construction costs, as a whole or in large part, may see increases as large as those on the materials that have been hit hardest,” WT’s construction economist Damon Roast said.
“Detailed analysis undertaken by WT suggests that cost impacts for building projects that were felt through May only impact relatively small proportions of many project types.
“In many instances the presence of a substitute material or material sourced from a different country will help to cap price pressures.”