Construction industry associations are calling for the immediate issuance of an implementing circular regarding Article 113 of Law 5290/2026, warning that delays in its implementation are causing serious difficulties in the execution of public works and increasing financial pressure on engineering firms, particularly small and medium-sized enterprises.
In a joint letter sent to the Secretary General of Infrastructure , Dimitris Anagnostopoulos, the Coordinating Committee of PEDMEDE, PESEDE, and SATE requested a meeting with the ministry’s political leadership to address the problems already being reported during the implementation of the new regulation.
In their letter, the organizations point out that many contracting authorities are either not applying the relevant regulation or are postponing decision-making, citing the need to await official guidelines from the ministry.
As they emphasize, Article 113 provides for the possibility of price revisions in public works contracts to offset part of the increases in materials, fuel, transportation, and construction equipment rentals. Essentially, this is a mechanism to provide financial support to contractors during a period of intense inflationary pressures and continuous price hikes.
The biggest problem is faced by small and medium-sized contracting firms, which have limited financial flexibility and less ability to absorb the increased costs.
The letter emphasizes that “all Contractors’ Associations are receiving reports from our Members regarding Contracting Authorities that either refuse to grant the statutory adjustment—despite the provisions of the Law—or postpone the relevant decision, informing project contractors that they are awaiting explicit instructions on the implementation of the provisions of Article 113 from the competent Ministry.”
“Taking into account the urgent nature of the regulation, in view of the completion of the TAA projects, as well as the significant pressure being exerted on our Members by the rapid rise in prices, as a result of inflationary pressures due to the war in Iran, we kindly request that you schedule a meeting between the Executive Boards of our Contractors’ Associations and yourself, so that problematic cases of non-compliance with the provisions of Article 113 of Law 5290/2026 and to formulate an appropriate application circular that will apply uniformly to all contracts, thereby eliminating the potentially significant discrepancies that create issues of equal treatment within the sector,” the letter concludes.