Construction companies’ SOS: 95% of jobs don’t adjust their price with inflation

178% increase in electricity, 50% increase in iron and steel materials, 40% increase in ceramics, 20% increase in copper, 17% increase in wood and 55% increase in aluminum. These unstoppable unbearable price increases, estimated at around 30%, are what the National Confederation of Construction condemns. The government does nothing on its part to overhaul the prices of public works.

At the initiative of the Ministry of Transport, Mobility and Urban Agenda, the Executive passed two Royal Decree Acts allowing for the review of public contracts. However, the terms and interpretation made by the Ministry of Finance, about 90-95% of work-in-progress has no possibility to apply price revision. Only railway and hydraulic infrastructures, highways and industrial buildings have some possibilities.

One of the most uncertain aspects of the Royal Decree Act 6/2022 is determining when awards can be reviewed. After the comment made by the Ministry of Finance, The studies must be in the processed state between January 1 and December 31, 2021 and completed after the publication of the standard.. This procedure has generated a lot of controversy and CNC is planning private voting. This does not include all infrastructures whose construction was started after the start of 2021 or completed before the issuance of the Decree. In addition, those with an execution period of less than 15 months, which according to employers of construction companies make up 80% of contracts. In 2021, 6,679 works were tendered in Spain, 5,307 of which had a duration of less than 12 months.

They provide from the association that “Priority is given to contracts that are delayed and harm those who spend effort and complete their execution on time”. They also believe that these last two regulations have only caused delays in work, project abandonment, industry paralysis, and the closure of small regional construction companies. Add to this the silence of the Administration, as companies that had to make a request before confirming the end of the job did not receive a response to enforce these reviews.

conflict between governments

Autonomous Communities, local organizations and the Government are in complete conflict on this issue. There are municipalities that do not enforce the Royal Decree, and there are regions that have relaxed conditions, including Galicia, Andalusia, Extremadura, Murcia, the Commonwealth of Valencia, Catalonia or Aragon. Full, Galicia, Extremadura and Andalusia are in a bilateral process with the Manager before their flexibility is challenged. Constitutional Court.

National Construction Confederation Calls on the Ministry of Transport to issue a third decree increasing the maximum compensation amount from 20% to 50% of the contract signing value and compensating for the price increase, taking into account all work started after January 1, 2021, which local organizations are obliged to implement. energy.

Source: Informacion

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