Lack of building materials and their high prices can lead to the collapse of weaker links in the supply chain. This will ultimately bring employment problems. The current rise in prices is completely unprecedented. The president of the Association of Entrepreneurs in the Construction Industry, Jiří Nouza. According to representatives of construction companies contacted, the prices of steel and insulation materials rose by up to 100 percent year on year, and even more for some wood products. As they stated, there is a shortage of building materials, delivery times are being extended and future developments are difficult to predict. According to the Metrostav Group, for example, construction timber rose by up to 160 percent from September 2020 to the end of May 2021, reinforcing steel reinforcement by almost 100 percent, and expanded polystyrene EPS by 83 percent. According to data from the websites of sellers of building materials, a kilogram of reinforcement costs CZK 50 to 70, depending on the width. A package with five sheets of polystyrene with a width of 50 millimeters can be purchased for about 90 crowns. Acoustic brick with a width of 190 millimeters costs about CZK 70. "We already have concrete examples where companies withdraw from winning contracts with an apology for not being able to guarantee the price and delivery date at the moment, as stated in the contract. This applies not only to contracting authorities but also to private investors," said Nouza. According to him, the consequences of the current situation will affect everyone, both investors and clients. "It's not just that it's just a problem for contractors and their risk. What's happening is an unprecedented jump that is or can affect the entire supply chain," Nouza added. As he further stated, one of the possible consequences is the withdrawal of the contractor from the contract, after fulfilling all the requirements, including the payment of a penalty. "For the investor, this means not drawing the allocated money, whether it is a loan or a subsidy. This creates a problem outside the contractor," added Nouza. According to developers, rising prices and lack of building materials are already beginning to be reflected in increased housing prices. As mentioned, one of the reasons is the disruption of the standard supply chain due to measures against the spread of coronavirus, when national borders have long been closed. At the same time, apartment prices in most regions of the Czech Republic have risen significantly in recent years. For example, in Prague, new buildings have risen in price over the last six years by 113 percent, and at the end of June, their average selling price was 118,480 crowns per square meter. In addition to rising prices for construction materials and labor, experts also cite low supply, rising land prices, high tax burdens and unnecessarily strict technical regulations as reasons for rising prices. With a share of about 10% of GDP, the construction industry is one of the most important sectors of the Czech economy. Since 2017, it has increased for three consecutive years. In 2018, production increased by 9.1 percent year on year, the most since 2003. Last year, construction fell by 6.2 percent, the main reason being measures against the spread of coronavirus. This year, by the end of May, it had fallen by 2.3 percent. Source: CTK