Work in Palma, Mallorca

Insistence that the value of works must increase. | MDB

Andrew EdePalma27/09/2022 11:59
TW
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The builders association in the Balearics says that, so far this year, 57 tenders for public works have not been awarded because potential bidders were not prepared to accept the terms. The value of the works has not been acceptable as this has not taken account of the increased cost of materials.

The association calculates that these lost works were for a total of 58.6 million euros. They include schools, government protected housing and work on the extension to the Palma Metro. At an average of around one million euros each, they would have been attractive but for what the association describes as the "exorbitant increase in the price of materials, fuel and energy, for which businesses are not being compensated". National Statistics Institute figures point to the cost of works in the Balearics having risen by 30%.

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Companies are said to be facing a situation of "total uncertainty", as the association maintains that they are being forced to fully assume these extra costs without any subsequent compensation. A Spanish government decree earlier this year updated the value of works, but this was only for a category of large works that excludes 85% of those in the Balearics.

The president of the association, Fanny Alba, says that "we are the first who want to work, but in conditions that do not endanger the viability of companies or the jobs of our employees".