Philippines construction contract.

Skyrocketing steel prices have prompted the Philippines construction contract industry to consider including warnings in customer contracts.

Some in the industry are considering including an "escalation clause" in contracts to try to recoup their costs.

"The clause would be recognized by both parties that the price of steel is undergoing unusual price increases now that would have an affect on the contract Philippines construction contract," director of development of the Steel of New York.

The move comes as China's demand for scrap metal to feed its burgeoning automobile manufacturing industry has driven the price from $120 a ton to $255 a ton within months.

In 2001, the United States exported 7.44 million metric tons of scrap. Last year it exported 12 million metric tons, with China buying 3.3 million metric tons. China's demand for scrap increased 22 percent last year and is expected to increase 13 percent this year. Since last fall, steel Philippines construction contract prices have drastically increased, due in part to China's booming industrial economy.

"With the automobile industry in China heating up, prices have risen," of development of the Steel Institute of New York.

"It is chaotic at the moment. We have letters going out to clients, interoffice memos ... It's a soap opera senior vice president and chief engineer Lend Lease, referring to the spiralling prices created by the supply and demand environment.

"We are trying to get reimbursed from our clients. The prices we are getting from our Philippines construction contract subcontractors have all sorts of disclaimers."

"It's a real mess," CEO of Associates. "Our suppliers can sell it at a higher price overseas then they can in the states. As long as China is going to remain a big consumer of metal it will continue. It is causing an inflationary trend."

But steel executives say because of technological advances in steel production, prices in the past have not kept up with inflation.

"Because of the use of scrap metal, they have been able to keep prices at 1970s levels". "The deal was, they used recycled metal Philippines construction contract."

Last summer, steel scrap was selling in the $120/ton range. By the fall, it had gone up by one-third, to more than $160/ton, and by mid-February it had exceeded $255/ton.

(For Manila and surrounding)

American Design Construction

#92 Ordoñez St. corner Maroon St.

Concepcion Dos, Marikina City

See website

(For Cebu, Bohol, Negros, Leyte)

ET & p Design & Construction
#888 Katugasan, Casili
Consolacion, Cebu

See website

(For Baguio and surrounding)

RA Gacoscos Construction
#99 Greenwater Village
Baguio City, Philippines

See website

(For Davao / Mindanao)

Raul G. Anuada (Realtor & Civil Engineer)
Unit 162, 16/F Landco PDCP Corporate Center
J.P. Laureal Ave., Bajada
Davao City

See website

-------------------------------------------------------------------------------------------------------