Because of all the geopolitical developments, the construction sector is under great tension. That will not have been missed to anyone’s attention. Due to the continuing demand, the shortage of materials and the sometimes reduced production capacity because of COVID-19, the construction costs have risen heavyly recently. The war in Ukraine and all related to that makes these very highly uncertain times.
This uncertainty has far-reaching consequences, not only for the availability of materials and raw materials and so for delivery times, but also for the prices of materials, raw materials, energy and fuels. This goes far beyond the normal business risk!
This forces us to come up with a solution in which we can still offer you, as a customer, price certainty for a quotation or order and in which we, as a supplier, do not run any incalculable business risks. This is why we have opted for a separate raw materials surcharge and fuel surcharge.
Orders that have already been signed will be delivered according to the agreements made, as you would expect from us!
Raw material surcharge
The prices of raw materials for our concrete retaining walls (sand, gravel, granite, but especially cement and reinforcement steel) have risen enormously in the past few months. For example, our purchase price for steel is largely linked to the Grymafer, whose price development is as follows. See graph.
We bear a part of these costs ourselves (business risk), another part we have factored into a (temporary) raw material surcharge. This is determined for the quarter in which the order is taken, on base of the price development in the previous quarter and the expectations for the coming quarter. Your sales advisor can give you further information.
Please note that if the purchasing quarter changes, it’s possible that the surcharge may also change.
Both the supply of raw materials and the delivery of retaining walls largely take place by axle. The cost of fuel has risen unprecedented. See also the Evofedenex graph which we have added as an indication.
We bear a part of these costs ourselves (business risk), as we do with the increase in raw material prices. Another part we have factored into a (temporary) fuel surcharge.
This fuel surcharge is determined on the basis of the average 4-week price level at the time your order is confirmed and is therefore fixed, notwithstanding the time of delivery.
Subject to change.