The National Federation of Buildings and Public Works, part of the General Confederation of Moroccan Enterprises, said continued supply constraints and volatility in commodity prices required the government to extend the exceptional measures in the public deals that ended October 18.
Last April, the Prime Minister issued a memorandum containing exceptional measures to mitigate the effects of high prices and shortages of raw materials for contractual obligations under public transactions for a period of 6 months.
These measures included the extension of the deadlines for the execution of transactions in progress for a period of 6 months upon request, with a different procedure related to the return of late penalties for a transaction in progress. executed, as well as the possibility of terminating transactions that are in the process of being completed without confiscation of financial guarantees.
The procedures also provided for the revision of the prices of transactions with the performance of works, taking into account a significant increase in the cost of certain types of raw materials, prices for services and some goods necessary for public procurement.
The National Federation of Buildings and Public Works said in a press release that the implementation of the contents of this memorandum has been known to encounter a number of obstacles, including the negative behavior of a number of project owners, government agencies and companies that did not comply with the directives contained in the document.
The federation itself, representing construction and public works companies, stressed that the crisis is still ongoing due to supply difficulties and rising raw material prices as a result of the inflationary economic situation; This requires expanding procedures so as not to affect the treasury of the contract.
The same body called for the initiation of a comprehensive reform of the price review system, given that this issue has become urgent in the light of current circumstances characterized by constant price fluctuations at the national and international levels.
According to the Ministry of Equipment and Water Resources, the value of investment programs allocated this year to the construction and public works sector is more than AED 47 billion, compared to AED 41.4 billion in 2021.