Builders fear ‘plague of abandoned auctions’ after Government suppresses price review

This builders People from Alicante are afraid “plague of abandoned auctions” before the government’s decision not to extend the measures Established in last year’s Royal Decree Act 3/2022, allowing compensation for award recipients cost overruns It is due to the increase in material costs caused by the war in Ukraine and the problems in supply chains after the pandemic. A decision they call “mistake“and as they warned, jeopardize the implementation of European funds and projects that were tendered after March 2, when the decree expired.

Therefore, the president of the Alicante State Public Works Federation (FOPA), Javier Gisbert thinks that”raw material and energy markets remain unstable with uncontrolled price increases that strain budgets and business planning”, “a system economic rebalancing of public contracts“According to the employer representative, this ensures the viability of the projects and the survival of the companies.

According to him, the right thing to do to avoid such situations would be to issue a new decree containing these measures with some revisions. According to the data of the state employers association, last year More than 2,000 tenders canceled across SpainConsidered below the current market price, amounting to close to 1,000 million euros, some of which is linked to the Recovery, Transformation and Resilience Plan.

Francisco Javier Gisbert, president of Fopa. RAFAEL ARJONES


Arrangement Plan

Fopa warns of the special situation such decisions create in tenders related to: Arrangement Plan for the Ministry of Education construction and reform of training centers From the Valencian Generalitat. In this sense, Gisbert pointed out that this situation is also experienced in the province of Alicante, both in projects and tenders from different municipalities and in other projects published by supra-municipal administrations. “But in addition to that, it is possible for circumstances to arise. jobs started cannot be executed If the rise in prices continues, maturity” commented.

Fopa states that the prices of materials such as: steelHE copperHE aluminum continues to negatively affect the budgets of finishing works. According to Gisbert, “If there are no new price review measures in another document – it will be necessary for the Government to take concrete measures. ensure the viability of offers “Build the necessary security so that companies don’t have to work at a loss after March 2,” he said.

However, Alicante employers combine the terms of the letter sent to the Spanish Government Presidency by the National Confederation of Construction in order to consider the above mentioned as necessary. Extension of the Royal Decree and also to eliminate or at least soften restrictions on access to inspection”. In particular, it refers to the requirement that the budget foreseen for the said decree to be able to benefit from price inspection, to be increased by at least 5%, which, in the opinion of businessmen, is particularly harmful to SMEs, while the maximum limit is exceeded. 20% in the said review.

Source: Informacion

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