Builders fear cost escalation as migrant workers leave town

Apart from slow progress in construction works getting back to normal they also foresee estimation cost going up in the post lockdown period.

“The entire construction industry in Tamil Nadu is dependent upon the guest workers. Since they are returning home due to lockdown-related issues, the projects would get delayed. Further, the State has no manpower to meet the demand for construction workers,” said Ram Prabhu, treasurer, Builders Association of India (South).

He said there is a possibility that the projects which are underway would not be completed with the estimated cost. “In the present situation, the projects may become costlier. Every big agreement has an escalation clause, which is a change in agreement price due to a particular factor beyond the control of either party. Usually, 10 to 20 per cent, could be adjusted by the builder but if it goes beyond that, the landlord should bear the cost,” said Ram Prabhu.

The association believes even after work resumes, it could take one month for works to get back to normal speed. “The guest workers would return by then. Since we are paying better than our counterparts in other states, it is logical for them to return,” he said.

On the allegation that builders employ guest workers to locals to mitigate the cost, Ram Prabhu said, “In Tamil Nadu, we are paying equal salary to both local and guest workers. We are providing accommodation and food to the guest workers apart from their salary.” A small-time builder in Anna Nagar said, “Many projects are pending.

We should soon be able to resume works in non-containment zones in the city at least. There is no shortage of raw materials. Apart from the delay in finishing the project, it may become slightly costlier considering the circumstances.”