Salud Gil, head of the construction federation in Las Palmas, has claimed that building costs have increased by 40% and that €200 million of public works are not being carried out because companies are reluctant to take on the increased costs.
In an interview with La Voz, Gil claims that the pandemic and the war in Ukraine are both behind recent price increases that are making it more difficult for constructors to remain within budget.
This, in turn, means that many companies are reluctant to apply for tenders in which “the prices do not reflect the market.”
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