If lack of price updates causes public works construction companies to leave left behind dozens of awards Companies allocated to the sector considering that they are not profitable throughout the province private building doesn’t have much better. As reported by the employer fopaIt imposes some new operators that emerged after the 2008 crisis, most of which are under the control of international funds. very harsh conditions in the contracting of projectswhich prevents, in many cases, the exclusion of the cost increase they have suffered in recent years, risk what does this mean for the continuity of their companies..
So much so that the board of directors of the employers’ association in Alicante demanded the preparation of a draft law from the administrations. Private Construction Contracts Lawpermissive rebalance the situation and avoid what is sometimes considered real abuse.
They remember from Fopa 2008 housing bubble burst it meant the disappearance of many local companies and their replacement. new operators, mostly driven by big international funds. As they emphasize, a transformation, contributed to the professionalization of the industry.provide stability and security, but at the same time expand”unfair contracts with little flexibility and with little empathy for construction companies where “by far the worst unemployed in these circumstances is the builder”.
Fopa describes situations such as the “need” experienced by partners. closed prices “the risk and initiative of the builder” who should be responsible for “the measures of the project, as well as the compliance of the project with current and future regulations”. At the same time, supporting funds they do not accept price revision in a case inflationary increase this causes losses due to the increase in the prices of the main building materials. In other words, they demand construction contracts for turnkey buildings where all the risks are with the contractors.
In addition, they were detected guarantee fund withholdings delivered by the builder to handle all after-sales service complaints over extended periods of time. The current law stipulates that this guarantee fund of 5% of the value of the work will be returned to the contractor 12 months after the delivery of the work. However, according to the employer, as currently any complaints from the end customer to the promoter’s after-sales department are accepted, a specific law in the industry is required to determine the return conditions and questions the builder must answer.
law changes
Fopa’s board of directors agrees that the Private Construction Contracts Act arranging these situations Offering legal certainty and clear rules to the industry without any abuse of any party between the construction company and the contractor company. This includes “unifying the construction industry”. Balancing forces and maintaining a balance between risks and responsibilities between the two parties”.
Fopa thinks that a guide should be created by professional organizations on which issues to complain to the project owner or the builder. In addition, this new standard is required to specify the return period of the guarantee fund and the maximum return period of the guarantees, which determines what is included in the after-sales claim process, under what conditions.