Malaga builders warn: If prices are not revised, public works will be stopped

Far from being reduced, the price of construction materials and raw materials continues to increase, contributing to issues in public works. Six months have passed since the peak of inflation in April, but the situation remains out of control and builders fear that, if provincial town councils don’t continue to exercise agility in price reductions, many projects that have been started will come to a halt, as reported by Malaga Hoy. 

Violeta Aragon, General Secretary of the Association of Builders and Promoters in Malaga (ACP) has pointed out that the problem is heating up between companies. She has expressed her fear that the city councils aren’t responding to the demands generated by the cost overruns of materials and energy. She has said that “if these conditions continue, many projects will be paralysed”. 

According to the latest data from ACP, Malaga is the province with the most deserted public works contracts, with 43 which had been planned until the month of September. 

The current conditions referred to by Aragon have provoked various decrees to try and alleviate the increase in prices. On one side, that proposed by the central Government who are focussed on the executive’s large projects and infrastructures.

On the other hand, the decree proposed by the town council of Andalucia in May which finds itself in discussion between the regional and central administration. These conditions make the municipalities “reluctant to accept the decree of price review,” according to Aragon. 

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