Contractors face higher steel and paint costs

Rising steel, paint and waterproofing costs offset fuel savings as contractors warn of project delays

TDT | Manama

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Bahrain's construction sector is navigating a split market: cheaper fuel brings some relief, while surging prices for key building materials squeeze project budgets and strain contracts signed at lower rates.

The recent fuel price reduction approved by the Fuel Prices Determination and Monitoring Committee has lowered running costs across several site services. Khalaf Hujair, president of the Bahrain Contractors Association, said the cut had improved cash flow and reduced expenses for concrete pumping, crane hire and construction waste removal.

Prices for concrete, blocks, sand and cement also eased or held steady, offering contractors limited breathing room.

The relief, however, is being cancelled out by sharp rises elsewhere. Reinforcing steel has climbed to around BD280 per tonne, driven by higher raw material costs and regional market shifts. Waterproofing membranes have jumped from BD11.200 to BD16, while paint has surged from BD28 to BD47.

Ali Al Qahtani of Bianca Contracting said average material price increases had exceeded 20 per cent across many products in recent weeks, with regional supply chain disruptions adding further pressure.

Contractors are now recalculating costs for new projects, while some investors are adopting a more cautious stance on development decisions.

"Continued price swings could slow the launch of new projects or delay some work," Al Qahtani warned, calling for closer market monitoring and stronger support for local supply chains.

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