Prices of construction materials are rising rapidly, which in turn means serious problems for investors and contractors. It is difficult to estimate the investment costs, and in the face of difficulties in renegotiating contracts, some contractors prefer to abandon construction.
Of course, in most cases construction contracts are signed well in advance of the work itself. Hence, contracts were often finalized under completely different price realities.
This is another proof how important it is to include VALORIZATION CLAUSES in such contracts. Unfortunately, they are still too rare on the market.
The necessity to determine the principles of possible contract amendments concerns both large infrastructural undertakings and housing investments. In the latter case, it may prove particularly necessary for investors and contractors OPERATING IN THE HOUSING CONSTRUCTION MARKET.
It is also worth mentioning that, despite changes in the law, considerable problems are still noted in the case of public procurement indexation. PUBLIC INVESTORS REMAIN RELUCTANT TO RENEGOTIATE CONTRACTS.
In any case, increases in material prices force some contractors to analyze whether it is more profitable for them to STOP CONSTRUCTING.