Jan 2013 Financial News

TCL grants contractors 90-day waiver on cement hike

Jan 24, 2013

Trinidad Cement Ltd (TCL) has granted a 90-day waiver on its 9.5 per cent increase on cement to members of the T&T Contractors Association (TTCA) who are significant users of cement on fixed priced contracts. This was confirmed on Wednesday by Mervyn Chin, president of the TTCA, which made a proposal to TCL following its ex-factory increase on cement that took effect from January 9.

Chin said the TTCA’s proposal to TCL came through, but on the condition that it only applies to those members on fixed priced contracts who would have been put at a disadvantage by the increase. The 90-day waiver took effect from January 9 and will come to an end on April 8, Chin said.

“This agreement goes back a few years. Every time there is a price increase, we either get three months’ notice or, in lieu, give us a waiver in light of the inadequate notice,” Chin said. “Against the backdrop of TCL’s circumstance, it has assisted contractors, through these difficult times, to get a temporary waiver.”

He said that the TTCA has about 90 members, but not all of them are significant users of cement. “I imagine TCL would have measured the exposure. It’s a longstanding relationship we continue to enjoy.” Chin said those members on fixed priced contracts would indicate to the TTCA secretariat the extent of their use of cement for projects, which would, in turn, inform TCL to benefit from the waiver.

Chin said this recent agreement between the TTCA and TCL has reinforced the need for the TTCA to meet quarterly with the cement producer to discuss matters of mutual interest.


Source:
Trinidad Guardian
Thursday January 24, 2013

http://www.guardian.co.tt/business/2013-01-24/tcl%E2%80%88grants-contractors-90-day-waiver-cement-hike