Purchase Price Review in the Infrastructure Industry

Abstract

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.