SANTO DOMINGO.- While the increase made by the Ministry of Housing, Habitat and Buildings (Mivhed) to the inspection process of private works is described by builders as a new blow to the construction sector, President Luis Abinader affirmed yesterday that this measure will not affect the industry.
During the weekly press conference, the president explained that this is a normal adjustment to adapt prices to current needs and that it was done because the supervision of works in the Dominican Republic must be strengthened.
However, yesterday the Association of Builders of Santo Domingo East (ACOSDE) considered that the increases applied by the Mivhed https://inmobiliario.do/mivhed-aumenta-tarifas-de-inspecciones-obras-privadas/ violate current laws and regulations, after warning of the consequences that the measure would have for the construction sector.
"We need to better supervise all structures, and that's simply why all the normal rates are increasing," the president commented while answering questions during the weekly meeting with the media.
He added: "I don't think that will have an impact because we're talking about 0.1% of the total cost, imagine, and it should be done to have a better service. I think these are rates that haven't been adjusted to today's cost realities for decades," Abinader added.
Acosde warns of consequences
Business leaders in Santo Domingo East disagree with the Dominican president's statements. The group points out that, regarding the processing of building plans, "they would charge 0.1% of thecontract value, which contradicts decisions TC/0067/13 and TC/0339/14 of the Constitutional Court."
"This increase in costs could discourage housing construction, investments and projects, and therefore job creation, directly impacting the economy because this sector represents approximately 15% of the Gross Domestic Product (GDP)," explained Riubell Montes de Oca, president of the business association.
He said the measure was not agreed upon, that it violates current laws and regulations, and that in the case of construction supervision, the amount is double the previous amount.
He expressed concern about the recent increases because they would raise construction costs in general, affecting economic viability and, consequently, access to decent housing for the entire population, and aggravating the housing deficit of around1.4 million homes.
Acosde warns of the negative impact that the application of considerable increases in service rates would have, after calling on key players in the sector to discuss and analyze the implications of the increases.
"Given the lack of dialogue from the authorities, I call for dialogue with key players in the construction industry in order to analyze the implications and explore possible solutions that balance the needs of the ministry with the sustainability and development of the sector and access to housing.".
The Dominican construction sector is going through a series of difficulties ranging from constant increases in the price of construction materials, increases in freight costs during the pandemic, difficulties in importing due to the Russia-Ukraine trade war, high interest rates, frequent delays in obtaining permits to start construction, scandals over alleged bad practices, complaints to the Consumer Protection Agency, labor shortages and now the increase in fees from the Ministry of Housing and Urban Development (MIVHED).
