Rising Costs Leave 200 Public Works Tenders Deserted in Valencia Province

The construction sector reports that budgets do not align with material and energy price hikes, urging an urgent review.

Generic image of construction materials on a site, symbolizing rising costs.
IA

Generic image of construction materials on a site, symbolizing rising costs.

The escalating prices of raw materials and energy have resulted in 200 public works tenders receiving no bids in the province of Valencia over the past year, according to the sector's employers' association.

This situation, exacerbated by the international context, is severely challenging the public works sector, which warns of a significant mismatch between actual execution costs and the budgets set in tenders.
A clear example of this problem is the contract for the structural reinforcement of a sports pavilion in Riba-roja de Túria, valued at 60,000 euros, which received no offers. The town's mayor, Robert Raga, emphasized the need to review prices, as this trend has affected numerous infrastructures.

"It's a small project, relatively: it's 60,000 euros, but there's a lot of work in construction and prices need to be reviewed."

Robert Raga · Mayor of Riba-roja de Túria
Companies are choosing not to bid on these tenders to avoid unmanageable economic risks, a decision that particularly impacts post-DANA reconstruction projects. Raga warned that if inflation and prices continue to rise, a generalized review will be essential.
The president of the Federation of Construction Contractors of the Valencian Community, José Luis Santa Isabel, detailed alarming increases: bitumen has risen by 30% (200 euros per ton), concrete has increased by 16 euros per cubic meter in the first quarter, and steel has gone up by thirty cents. In total, costs have risen between 20% and 25% in the last year, with a cumulative increase exceeding 50% since 2020 in some cases.

"We need this reconversion because the alternative is that we start seeing many deserted works or abandoned works, and nobody wants that."

José Luis Santa Isabel · President of the Federation of Construction Contractors of the Valencian Community
Given this critical situation, the sector demands a decree from the central government that allows for price revisions in both ongoing and future contracts, to prevent project abandonment and ensure their viability.