The Executive Secretary of the Ghana Real Estate Developers Association, Samuel Amegayibor, says that some real estate developers are burdened by debt due to price hikes.

He emphasised that construction, or house building, is considered a branch of manufacturing, as houses are produced.

Mr Amegayibor noted that the duration of house construction varies depending on the project, and he pointed out that price hikes affect construction at various stages significantly.

This follows Trade Minister K.T. Hammond's controversial proposed Legislative Instrument (L.I.) to regulate cement pricing, which was laid before Parliament.

It is expected to become law in the next 21 days unless a two-thirds majority of Parliament annuls it.

In an interview on the JoyNews AM show, Mr. Amegayibor said, "When you are executing a project of this nature and you start with the foundation at ¢ 60 a bag, you get to blockwork on the superstructure, you buy cement at ¢ 70, you are doing the roof, you are buying it ¢ 80 when you are doing plastering, it is ¢ 90 when you are doing floor finishing, it is ¢ 100. Every step of the way, you are increasing prices. It is difficult”.

The Executive Secretary explained that quantity surveyors typically include a contingency margin in their bill of quantity, often around 10%, to account for unforeseen expenses.

He noted that this 10% contingency could be exhausted within the first month of starting the project.

“Sometimes, we do not even start, and that contingency is already gone. How do you work the relationship between you, the producer of the house, and the person you have contracted with to executive the project over a period of time?”.