Some construction firms in Singapore are absorbing higher material costs to keep projects on schedule, as prices surge due to the ongoing conflict involving Iran. The Singapore Contractors Association Limited (SCAL) reported approximately 20% increases in key materials.
Petroleum-based materials like waterproof membranes, paint, and sealants have risen in price alongside oil spikes caused by disruptions at the Strait of Hormuz. Eastern Win, a construction material wholesaler, is building buffer stocks despite added costs of up to 15%, citing shelf-life risks.
Shipping volatility is increasing lead times. United Tec Construction faces up to 10-day delays on marble imports from Iran due to vessel detours. Founder Allan Tan warned prolonged conflict could be disastrous for an industry still recovering from the pandemic.
Linesight consultancy forecasts higher steel prices and unstable delivery schedules, though severe shortages aren't expected. Public sector contracts may adjust for material cost swings, but private sector contractors lack such protection, leaving margins under pressure.