The Covid-19 pandemic caused significant disruptions to global supply chains, with contractors experiencing delays in the delivery or even unavailability of construction products. The ongoing war in Ukraine has further strained the supply of certain raw materials (e.g., steel) in Europe and price increases for construction materials have been observed across all EU Member States. Moreover, these developments coincided with a sharp hike in energy prices that has impacted the EU since 2021.
Many construction companies are having serious difficulties coping with these price increases and supply shortages for certain construction products/materials, with many at risk of not being able to fulfil contractual obligations. Rising costs have a negative impact on production levels and, in the field of public procurement, the absence of price revision clauses prevents several companies from participating in new tenders.
To add to the problem, in several Member States, contracts do not take into sufficient account prices increases and clients continue to enforce completion deadlines. As such, FIEC has repeatedly been raising awareness to the impact of supply chain disruptions and price increases for construction companies across the EU and has called for measures to be taken at the national and EU-level to mitigate adverse impacts on the sector, particularly adequate price revision mechanisms for all public contracts.