The National Construction Confederation (CNC) has warned that the price escalation suffered since 2021 by the main materials used for their activity may slow down the execution of rehabilitation or infrastructure projects linked to European funds. Construction companies say that the only way to prevent the price crisis from stopping projects from coming to fruition is to extend the exceptional review system for public works contract prices. This system, approved by the Treasury, expires next March.
According to the material price index of the National Statistics Institute (INE), between January 2021 and June 2022, steel materials have increased by 68%; aluminum, 59%; cement, 22%; bituminous mixtures, 81% and 88% energy. "Prices continue to grow, they do so more slowly but they continue to grow," explained Pedro Fernández Alén, president of the CNC.
The problem that this increase in the price of materials generates for construction companies is that it exceeds the review margins established in the contracts with public administrations and condemns businesses. According to Fernández Alén, the impossibility of reviewing prices in accordance with the economic context led to the dissolution of nearly 6,400 companies in the sector last year -17% more than a year ago- and almost 1,600 construction and real estate companies filed for bankruptcy. bankruptcy, 28% more, as a result of the increase in the costs of raw materials, whose prices have risen an average of 33%.
The consequences are also tenders that are put out to tender and that are deserted. Last year, companies stopped going to 2,032 public works, with a bidding value of 982 million euros. "It is unanimous", Alén has assured, "the costs do not come out".
In addition to materials, there are other factors such as labor and energy that are also contributing to leaving the margins of construction companies in charge of public works in negative territory. The sector demands that the administration raise the percentage of spending that can be allocated to general expenses in a public works contract from 13% to 17%, since the regulations allow it. He also asked to eliminate the 4% rate for construction management and inspection, in force since the 1960s, which "charges the costs especially to small and medium-sized companies."
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