The Government will not renew the exceptional mechanism launched a year ago to transfer the rise in the prices of raw materials to public works tenders. This system was put into operation with the invasion of Ukraine, given the risk that many construction works would be paralyzed as they could not bear the sharp increase in costs.
Government sources explain that the contracts awarded or formalized until March 2 will enjoy the review mechanism until the end of their execution. The previous regulations will be applied to subsequent ones, which is that of the law of deindexation of the economy of the Government of Mariano Rajoy, in which the revisions attend to factors other than the CPI
"The current circumstances do not justify an extension of this extraordinary measure, since, fortunately, the prices of raw materials are more level than in 2021 and than in the first half of 2022," the sources point out.
The forecast is that in 2023 the evolution of costs will moderate, which has encouraged the Government to stop applying the exceptional mechanism. The new contracts of Adif or of the General Directorate of Highways, which are the two major bidders in the State, are already based on price references typical of the current scenario.
Facing what may happen in the future, the Government's commitment is to carry out "constant monitoring" to act when a major imbalance occurs again. The offer has not been liked by the construction companies, which through their employers, the CNC, are crying out loud and talking about the risk of deserted tenders for billions of euros.
The construction companies predict a "wave of dissolutions and bankruptcy proceedings" as soon as the prices of materials rise again. According to what they say, the execution of European funds may be affected.
