The construction industry associations PEDMEDE, PESEDE, and SATE, warning that the sharp increases in material prices due to the crisis in the Middle East threaten the smooth execution of public works and adherence to schedules.
In a joint letter to Minister of Infrastructure and Transport Christos Dimas and Secretary General of Infrastructure Dimitris Anagnostopoulos, the contractors’ associations cite “force majeure” conditions in public engineering projects due to the rapid price increases observed in construction materials.
As they point out, from early March to the present, the prices of materials used in projects have risen by 20% to 35%, while current pricing schedules continue to be based on outdated data that does not reflect current market conditions.
Industry representatives emphasize that the situation threatens the financial balance of contracts and may affect the completion of critical projects funded by the Recovery Fund and other European programs.
To address the problem, they are calling, among other things, for the activation of the legislative provision to adjust price revision factors, as well as the establishment of a special compensation mechanism for asphalt and other petroleum products, in order to ensure the smooth progress of projects throughout the country.