Contractors say adhering to Covid protocol has led to spike of expenses

KOCHI: Contractors who have resumed construction activity say their expenses have skyrocketed due to implementation of Covid-19 protocols at worksites. According to the government contractors association (GCA), costs have gone up by at least 10% on each project.
GCA general secretary C D George said the expenses are associated with transportation of labourers, quarantine and accommodation, hospitalization and treatment, prolonged absence of staff and closing down of sites.“Depending on the urgency of work, contractors are sometimes forced to fly in labourers. Then these workers have to be quarantined and their accommodation, food and other expenses have to be taken care of. If a worker tests positive for Covid-19, the contractor has to foot treatment bills. Moreover, they have to test all those engaged at the sites. Often contractors have to foot the bill for treatment of family members of workers and engineers at the sites. When more people are tested positive a worksite is closed down. This leads to further delays and cost escalation,” he said, adding there is no way for a contractor can recover these expenses from the government.
Moreover, large numbers of migrant workers having left the state following the pandemic has resulted in shortage of labour. As demand is high and supply has declined, labour charges, too, have gone up. “Workers who were paid Rs 600 a day are now being hired for Rs 700-750. As Covid has also affected neighbouring states, it has become difficult to find workers to transport construction materials that we require. Hence, we have to pay higher rates to transport raw materials,” said George.
Contractors engaged in construction work in the private sector say they face similar issues. However, if there is provision in the contract that allows the contractor to demand cost escalation citing unforeseen reasons then they demand their clients to chip in. “Cash flow in the construction sector is already affected. When contractors have to meet additional expenses, they start accumulating losses. When new projects are being undertaken all expenses related to Covid-19 protocols are accounted for, and it is passed on to clients,” said a city-based contractor.