More materials enter the price review of works

The Ministry of Finance and Public Function approved a Ministerial Order a week ago by which it expands the list of materials whose cost increase must be taken into account for the purposes of the exceptional review of prices of works contracts provided for in the Royal Decree-law 3/2022 of March 1. This, approved by the Government at the beginning of the year, grants the contractor the possibility of an exceptional revision of the prices of the works contracts when the increase in the cost of the materials used has had a direct and relevant impact on the economy of the contract.

This list includes cement, ceramic materials, wood, plastics, chemical products and glass, which are added to those already established, which are steel materials, bituminous materials, aluminum and copper.

Although it is true that said increase has been slowed down in the second half of 2022 -it has stabilized, but has not become cheaper-, all these materials have chained strong price increases since last year, when the problems of supplies, then with the start of the inflationary crisis and already in February of this year with the Ukrainian War.

Specifically, the price of aluminum in March was 60% more expensive than in January 2021, according to the General Material Price Indices of the National Statistics Institute (INE). In the same way, in those 14 months ceramic materials became more expensive by 40%. And they all continued to rise in the second quarter due to the war.

In this way, with the inclusion of new materials to the price review list, the Government adapts to the evolution of prices and gives a horizon of stability to the contracting of public works.

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