Employer of construction companies, Association of Construction Companies and Infrastructure Concessionaires (Seopan)negotiates with the Government the reform of the public works procurement procedure. After this offer was announced to the public in February, major construction companies consolidated their positions. “We have to propose a change to the contract system, which is take into account not only economic but also technical, ESG criteria or other aspects such as occupational safety“, assured Ignacio Clopés, manager of Ferrovial’s construction division, during the 1st Infrastructure Forum organized by El Economista.
OHLA CEO José Antonio Fernández Gallar explained: “The Anglo-Saxon world has long abandoned auctions and is working on joint projects”. “A target price for work is compared with all companies in Sweden, Norway, the UK or Ireland, and the technical capacity of each is put at the disposal of the administration,” he said.
return of concessions
Another important request from the main construction companies was the return of the concession mechanism for the development of public works in Spain. “Work is needed and concession gives you the tool to address these infrastructuresThey cannot be tied to the General Government Budget and yes or yes they have to resort to this model,” said José Antonio Madrazo, director of the FCC Construcción in Spain and Portugal.
Along the same lines, the OHLA CEO recalled the virtues of this infrastructure development formula: “Compromises have implications: they move money, speed up and shorten times, optimize projects and resolve requests much faster than individual bidding processes“The concession model is an alternative for infrastructure development as it has an impact on people’s quality of life. […]. We are surprised that this mechanism has been abandoned in Spain, but I hope it becomes a new reality.“, stated Pedro Sigüenza, CEO of Sacyr Engineering and Infrastructures.
Companies bets on concessions
In recent years, major infrastructure companies have completely shifted their business models from construction companies to concession-driven growth. José Antonio Fernández Gallar explained why: “The concession world fixes the income statement, not dependent on construction cycles. All companies are also listed and you have to think about the multiples the market pays for a company. when you have privileges you are superior than when you are a builder“.
Humberto Moreno, CEO of Acciona’s construction branch, concluded that most developed countries consider it “tested” and go for the concession model only and only. will need to be adapted to reflect the liquidity that exists in the market.: “We have a clear commitment to making concessions: markets pick you up and guarantee jobs for the construction crew.”