Manpower, material constraints behind cost spike for construction firms
SINGAPORE - Manpower and building material costs in the construction sector have spiked since the Covid-19 pandemic began, delaying projects and hitting the cash flow for companies in the supply chain. Here are the main costs companies are grappling with: 1. Salaries Before the pandemic, a basic-skilled worker earned about $800 a month, The Straits Times understands. Higher-skilled workers earned $1,600. But there has been a shortage of workers over the past year due to tighter border rules and safe management measures. Companies with workers whose work permits have expired have also faced difficulties renewing them. As a result, salaries have gone up by 10 per cent to 50 per cent as companies compete for a shrinking pool of manpower. Poaching workers with the promise of higher pay has become more common. The Singapore Contractors Association (Scal) said that average wage costs have gone up 46 per cent for similar jobs compared with pre-pandemic times. 2. Foreign worker levies Contractors are also feeling the pinch from foreign worker levies, which range from $300 to $950 a month, depending on a worker's skill level. The levy rebate for eligible building workers rose from $90 a mon...
