Given the delay of the Government and high inflation, construction companies are affected by the situation. From the sector they ask to enable its continuity
Within the framework of a inflation monthly that is close to 10%, the Public Works at the national level were paralyzed, which puts more than 500 at risk SMEs. Among his reasons, the late payments by the government and the lack of price updates.
In addition to the problems faced by large construction companies, small and medium-sized companies that work in public works are affected to continue operating. “Many of them are on the verge of bankruptcy and with all kinds of problems, but above all they have no way to absorb operating costs”told a businessman to C5N.
About the situation, the Argentine Chamber of Construction (Camarco) warned that currently the Nation, the provinces and the municipalities delay the treatment and payment of public works certificates with their respective redeterminations of costswhich generates a strong impact on jobs and jeopardizes both the works and the companies.
SMEs affected by the paralysis of public works
According to some SME entrepreneurs, payment arrears often reach a minimum of eight months. In a context of inflation between 10% and 20% per year, delays in payments and redetermination of prices is something that can be sustained. However, with inflation of 10% per month “there is no way to absorb it”explained the owner of a construction company.
In addition, the cMarketing conditions of inputs that record increases of more than 100% per year and the lack of soft loans to restore working capital. “We urgently need the Government to pay for the work already carried out, interest for default and their price redeterminations”, said a businessman. And he added: “We need them to give the contractor the possibility of neutralizing the work deadlines, without penalties or freezing, until the situation is resolved.”
The companies grouped in the chambers of the provinces and municipalities They demand a solution in the short term.
For his part, he Federal Council of the Argentine Chamber of Construction, demanded the “urgent and full payment of the work carried out, the interest for late payment and its price redeterminations, which adjust the outdated contractual values to the current costs. This in all contracts, including those carried out by agreements between jurisdictions, works in general carried out by SMEs from all over the country”.
In this sense, through a declaration signed by the 25 delegations from all over the country, The companies requested the possibility for the contractor to neutralize the work deadlines, without penalties or freezinguntil the situation is resolved.