The Government yields and will review the prices of the main building materials

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The Ministry of Finance has expanded the list of materials whose prices will be revised exceptionally in public works contracts. In this way, it will include cement, ceramic materials, wood, plastics, chemical products and glass in the planned price revision to face the rise in costs that they are registering and that has caused the paralysis or renunciation of multiple construction contracts throughout the country.

They are thus added to the steel, bituminous, aluminum or copper materials that were already included in the Royal Decree that the Government approved in March to exceptionally review the prices of works contracts, understanding that they have a significant participation in them.

The Executive understands that the evolution until August of the new materials incorporated now have experienced significant increasesalthough with a time lag with respect to the four materials initially included in March, according to the Official State Gazette (BOE) on Thursday.

This measure will come into force from tomorrow and it will apply to all public works contracts that are included in the scope of application of the Royal Decree-Law of March. The March decree already provided for expanding the list of materials, anticipating the possibility that the extraordinary increase in prices could be extended to other products with significant weight in the cost structure of construction contracts.

For this reason, and exceptionally, the contractor is recognized the possibility of a price revision of works contracts when the increase in the cost of the materials used has had a direct and relevant impact on the economics of the contract. This amount may not exceed 20% of the award price of the contract and will be applied in the final certification of the work as an additional item.

Source: lainformacion.com

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