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Ludovic Orban: Construction contract value to be pegged to actual increases in prices for construction materials

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Ludovic Orban

The governing coalition has decided to improve legislation amidst rising prices for construction materials so that the value of the construction contracts will be updated according to such increases, national leader of the National Liberal Party (PNL) Ludovic Orban announced on Monday.

"We discussed a very important topic and it must be mentioned because the local administrations , the builders must know. You know very well that, not only in Romania but elsewhere in Europe as well we are facing a wave of increases in the prices for construction materials and we decided to improve legislation so as to allow the value of the contract to be updated according to the actual increases in the price of construction materials," said Orban after a meeting of the ruling coalition that took place at the Government House.

He said a working group had been formed and a change in legislation would be prepared in two to three weeks' time.

"It is about indexing the value of construction contracts in line with increases in the price for construction materials and here we are talking about some unprecedented increases in the prices for concrete, wood, copper, aggregates, ballast and all other construction materials; otherwise, there is a risk that many builders will not be able to complete their investment objectives without a correct mechanism for indexing the value of contracts," said Orban, Agerpres informs.

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