A prefabricated component measuring 41 meters in length is lifted from a heavy-duty transport vehicle and positioned correctly using several cranes. (zu dpa: «Middle East war driving construction cost rises in Germany») Christoph Reichwein/dpa
Rising prices for fuel and materials driven by the war in the Middle East may disrupt the German construction sector, the industry has warned.
German Construction Industry Federation (HDB) chief executive Tim-Oliver Müller told dpa the price of bitumen, a binder for asphalt derived from crude oil, had doubled since the start of the war on February 28.
“Without bitumen, there is no asphalt, and without asphalt, there is no road construction.”
He warned price hikes from suppliers of other products were yet to come.
Rising costs increased the risk of project cost blowouts, Müller said.
Many contracts with the public sector are fixed-price contracts, leaving the company to shoulder price rises.
Müller called for retroactive price adjustment clauses in public contracts, similar to that introduced during the Ukraine war.
The German government plans to spend billions of euros on key infrastructure upgrades, including on roads and railways, this year.
The 41-meter-long prefabricated section is suspended from several cranes and is being moved into position. (zu dpa: «Middle East war driving construction cost rises in Germany») Christoph Reichwein/dpa