Nine out of ten construction and installation companies fear a rise in material prices in the coming weeks due to the war in the Middle East, according to construction federation Embuild.
Between 2020 and 2024, material costs had already surged by an average of 35% amidst the Covid-19 pandemic and the war in Ukraine. While prices had stabilised last year, the federation warns they could climb again as the conflict in the Middle East unfolds.
Embuild’s latest survey reveals that 35% of companies anticipate a price increase of 1–10%, while 39% expect rises of 11–20%, and a quarter foresee hikes of 20% or more.
The survey also shows that 46% of companies are using price adjustment clauses in their contracts, with 61% of them planning to activate these provisions immediately. Overall, 28% of all firms are considering passing on the higher costs to customers through such clauses, though many are trying to absorb the increases to maintain client relationships.
Embuild urges construction companies to include price revision clauses as standard practice in contracts. CEO Niko Demeester emphasises that this approach ensures transparency amid volatile markets driven by major geopolitical conflicts, which often cause sharp and unpredictable price fluctuations.
