Purchase Price Review in the Infrastructure Industry
The Pakistan Infrastructure Implementation Capacity Assessment (PIICA) analysis of the cost of materials, construction inputs, and technical services across the region can help in better understanding of the various dimensions of the infrastructure...
| Main Authors: | , , |
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| Format: | Policy Note |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2007/11/9382644/purchase-price-review-infrastructure-industry http://hdl.handle.net/10986/19547 |
| Summary: | The Pakistan Infrastructure
Implementation Capacity Assessment (PIICA) analysis of the
cost of materials, construction inputs, and technical
services across the region can help in better understanding
of the various dimensions of the infrastructure construction
industry. Such a study can also help in analyzing common
perceptions regarding the existing disparity in cost of
doing business, reasons for migration of technical, skilled,
and unskilled personnel to regional countries: quality of
construction; and other similar issues. The purpose of this
analysis is to assess the relative differences in: (i)
professional salary structures; (ii) cost of construction
inputs across regional countries; and (iii) contractors
working (unit) rates. The effectively decreasing charge
rates and salary levels over the past decade accentuates the
growing trend among professionals towards seeking more
lucrative jobs in the overseas market. Pakistan not only has
the highest cost of inputs in the region but when compared
to the United Arab Emirates (UAE) which has the lowest input
costs in the region, material input costs are 400 percent
higher in Pakistan. When adverse effects of other variables
like old, inefficient equipment, systematic weaknesses and
inefficiencies, corruption, and transparency issues are also
considered, the rates despite seeming to be
"competitive" may well, in fact, be unworkable. |
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