Price Adjustments in the Sudanese Construction Industry for Public-funded projects

Abstract

In recent years Sudan suffers from deterioration in the economy. There are three financial legislations issued from the Government of Sudan between Nov 2016 and Oct 2018. These legislations have led to increase in prices of all goods and materials especially construction materials that lead many contracting companies to submit claims demanding for adjustment of prices. This paper documents effort by the Government of Sudan (GoS) to address price adjustments for public-funded projects affected by the mentioned legislations. It also validates some data submitted by the contractors to examine the adjustment through a technical committee established for that purpose. Furthermore, the GoS has introduced a program to build the capacity of all involved parties in the construction industry to calculate price adjustments. This paper compares some data submitted by some contractors for three projects in east Sudan (Qadarif), West Sudan (Zalingei) and central Sudan (Khartoum) that have been approved by consultants with prices of materials obtained from an independent third party the in Khartoum. The results of the comparison are found that some increase in material follows the prices of the (USD) dollar as reinforcement and some local material increase in price due to other reasons like fees of transportation. Also, when comparing prices in different states in Sudan, there are differences in some material depending on the distance from Khartoum and the availability of the materials in the states like local materials as aggregates and red bricks.