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Martes 09/08/2022

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Mijas Town Hall will apply a price adjustment to public works contracts

  • The aim is to deal with the price increase, especially in raw materials
  • The Finance Councillor, Roy Pérez |

It adheres to the Central Government's measure to allow an exceptional revision of up to 20 percent of the award pric

Mijas Town Hall has announced that it will apply price revisions to its public contracts to reactivate the economy and thus help the companies that participate in these tenders, according to the Finance Councillor, Roy Pérez (PSOE).

"Mijas Town Hall has signed the local decree to join and apply this price review to works contracts this morning. It is an exceptional measure that comes to help all those companies that participate in our tenders and suffer an excessive increase in prices, especially in raw materials such as steel, iron, or concrete. We want to reach out to our business network to prevent many of the works being carried out, or that will be carried out to stop or suffer unnecessary delays in our municipality", detailed the Mayor. He has specified it is a measure "that affects both the contracts in force, and those we will have from now on".  

According to Pérez, this exceptional price revision may not exceed "20 percent of the contract award price. All those companies that can justify an increase in the expenditure previously set in the tender can request this increase over the next two months'.

Royal Decree-Law
Thus, Mijas Town Council joins a Royal Decree-Law that was approved by the Ministers Council at the beginning of May. Only a few days ago, it was transferred to the Andalusian Parliament with an extension of the requirements, including the revision of material prices and tendered works, even if the contracts for road maintenance and contracts of less than one year have not yet been awarded. In addition, it facilitates the possibility to change materials on construction sites, and introduces the removal of delay penalties.

Only the steel used to build bridges, high-voltage towers, or housing structures has experienced a one hundred per cent increase in 2021. This cost increase led builders and companies in the sector to request this price revision to avoid the standstill of public works in the country.
 

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