After the Government’s announcement of the suspension of the public workthe president of the Argentine Chamber of Construction (Camarco), Gustavo Weisswarned that the Failure to comply with contracts “can be taken to court.” Thus, he advanced through a difficult scenario for the sector, due to level of litigation which can cause a greater number of lawsuits.
“In terms of Public Works, they have not yet said how they are going to continue the works that are in progress and that they are in a very complicated situation due to inflation”he pointed Weiss this Wednesday in radio statements, in which he also noted that “we have to see how the measures are going to be translated into practice, we hope to meet with the Minister of Infrastructure.”
Although the details of the measures announced yesterday by Minister Caputo remain to be known, since Camarco They fear that the suspension of public workgenerates a scenario of greater conflict, which will result in lawsuits and lawsuits for not complying with the contracts previously established.
Suspension of public works: Camarco warned of legal conflict over contracts
“We have 3,000 works that are in progress at this moment,” said Gustavo Weiss, and warned: “If there is a signed contract and one of the parties does not comply with it, it can be taken to court.”
Em statements to C5N, stated the head of Camarco“In central countries like England, private investment in the country’s work does not exceed 7%, the rest is public investment. Investment in infrastructure is of no interest to the private sector, it is a global phenomenon,” he explained.
The Minister of Economy, Luis Caputo, reported this Tuesday that “the national State is not going to tender any more new public works and is going to cancel the approved tenders whose development has not yet begun.” He added that their implementation will be the responsibility of the private sector because “the State does not have money or financing to carry them out.”
“We assumed there was going to be an adjustment. The works that are in progress would continue, but they did not say how. We have to see how this translates into practice in the coming months. “We are waiting to have meetings with the Minister of Infrastructure and the Secretary of Public Works,” he said. Weiss to See you in C5N.
He also pointed out that “the works in progress are in a very complicated process throughout the year due to high inflation and delays in payments, in some cases very important. Today they are largely stopped or with a very low level of execution.” , he assured.
How many public works are in progress and how many jobs they generate
Weiss highlighted that, according to Camarco data, “3,000 is the number of public works that would be currently being executed, both direct works and by agreement.” He added that “if there is a signed contract and the Government fails to comply with it, potentially one can file a lawsuit in court. “We will see case by case.”
Regarding the jobs that would be affected by the measures, he explained that “the total employment in formal construction is on the order of 550,000 direct people, this is daily and monthly. Approximately half work in public works; the other half They work in private work,” he explained.
“Therefore, the universe of direct employment that would be affected by this situation is more or less 270,000 people. To that we must add approximately one indirect job for each direct job, which means 270,000 work in direct public works and the same amount indirectly,” held.
The head of Camarco dismissed the possibility that these 3,000 public works will be taken over by the private sector. “The world experience in countries like England, which was the inventor of this system, is that private investment in the total infrastructure of a country does not exceed the order of 7%,” he assured.
Source: Ambito
