Hundreds of public-sector contractors are facing the possibility of a work stoppage, some of which are working on critical infrastructure projects, such as the BOAK, according to Konstantinos Goliopoulos, president of the Panhellenic Union of Licensed Public Works Contractors (PEDMEDE).
Rising material prices in recent months are creating a suffocating economic environment for contractors, at a time when there has been no upward price adjustment in public works contracts, as required by law.
This refers to Article 113 of Law 5290/2026, which provides for the possibility of price adjustments in public works contracts to offset part of the increases in materials, fuel, transportation, and construction equipment rentals.
Essentially, it serves as a financial support mechanism for contractors during a period of intense inflationary pressures and continuous price hikes.
Speaking to reporters, Mr. Goliopoulos noted that in recent months, material prices have risen by 20% to 50% due to the war in the Middle East, while price increases for asphalt exceed 60%.
At the same time, however, government agencies are not covering the increased project costs, citing various pretexts, Mr. Goliopoulos emphasized.
If one considers that thousands of public works projects are currently underway, there is a risk that hundreds of them will not be completed, he noted.
It is also worth noting that many of these projects are funded by the Development Fund, and delays could result in the loss of funding.
The Ministry’s Response
Mr. Goliopoulos adds that there was recent contact with the political leadership of the Ministry of Infrastructure and Transport regarding the issue, and everyone agrees that it must be resolved. “We saw some interest from the Ministry in the days that followed, but then nothing happened,” he added.
A similar problem arose with the wave of price increases triggered by the outbreak of the war in Ukraine. It should be noted that the Ministry of Infrastructure and Transport covered the contractors’ increased expenses due to that conflict four months ago.
A press conference is scheduled for today by SATE, PEDMEDE, PESEDE, and STEAT to highlight the problems facing the public works sector due to the wave of price increases caused by the war with Iran.