The price increase of raw materials obliges to delay or paralyze one of every four works in Spain

One in four builders has been forced to paralyze or delay some of his works by the strong increase in the price of raw materials during this year, according to

The price increase of raw materials obliges to delay or paralyze one of every four works in Spain

One in four builders has been forced to paralyze or delay some of his works by the strong increase in the price of raw materials during this year, according to a survey conducted by the National Construction Confederation (CNC) in which they have participated Some 300 companies in the sector.

The constant price increase is caused by the lack of offering products coming from China. According to the survey, three out of four builders have suffered this shortage of raw materials, mainly wood, steel and aluminum, which affects final products such as concrete, sanitary, glass, paint, pavements, faucets, appliances, windows, elevators, cement or Pools, among others.

Delays suppose an overrup for companies, so that 24% of companies that have had to cancel works has had to endure an economic penalty. The cancellation or delay has caused these companies an economic hole between 1,500 euros and 3,000 euros per natural day, which represents between 10% and 50% of the budget of work or 4% of the award.

The increase in prices of raw materials has raised 22% the total cost of works in Spain. The president of the CNC, Pedro Fernández Alén, has insisted on three proposals to mitigate this problem: repeal the Law of Unassures in relation to public contracts, establish an automatic price rebalancing system against overrifts and streamline the management of European funds .

According to the study, delays in material deliveries reach 90 days for machinery and vehicles and even 70 days for appliances. Therefore, more than half of the works has suffered delays in its execution, although 52% have not seen their deadlines altered. Alen has remarked this Friday that the only thing that the sector wants is that the price is paid to the raw materials now.

Updated Date: 16 October 2021, 03:34

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