Argentina Procurement News Notice - 35970


Procurement News Notice

PNN 35970
Work Detail Public works with payment of the debt: inflation hits the good expectations of construction The payment of the Nations debt must be used for "capital expenses", both goods and public works. In construction, there are "very good" expectations After the province signed the agreement with the Nation for the federal government to pay Santa Fe the 150,000 million for co-participation that corresponded to the Santa Fe boot, it begins to diagram what will be the fate of funds. In the construction sector there are "very good" expectations regarding the destination of the amount assigned to works, but at the same time they expressed the growing concern in the area due to the lack of reference prices and the inflation that suffocates the sector. It should be noted that the payment of the debt must be reinvested by the Provincial Executive in terms of capital expenditures and/or for indebtedness of capital expenditures, which translates into public works. For this reason, although private entrepreneurs and construction chambers remain expectant, they ratified in dialogue with UNO their concern about the inflationary and unstable context in which the sector finds itself, affirming that "works have slowed down and some have been put on hold." contracts”. The construction of a house in Santa Fe exceeds four million pesos. The construction of a house in Santa Fe exceeds four million pesos. Regarding this, the head of the Santa Fe Chamber of Construction (CAC Santa Fe), Sergio Winkelmann, stated that "there is a high percentage of the agreement destined for public works." And he added: "This is excellent for the province of Santa Fe. The expectations are great, but as long as there is no support for this high degree of inflation that we have, it becomes very difficult, no matter how many works we have" . Constant increases In relation to the adverse context to put together tenders and set reference prices, the construction benchmark highlighted: «We cannot complain that there are no works, but this takes away that breath and that strength that we builders have to carry forward those works. Every week we find notices that cement is increasing, concrete is increasing, iron is increasing, not to mention fuel.” In what is the destination of the funds that the Nation will pay to Santa Fe, the percentage of co-participation that is assigned to the municipalities and communes also comes into play, which is in the order of 13.45%. Corresponding to the context of constant price increases in supplies, materials and equipment for construction, Winkelmann stated: «Works have not been paralyzed at the moment, at least in the area that corresponds to us. Yes, works have slowed down and there are contracts on hold to be signed ». Suspension of tenders With a total lack of prices as a result of the non-quotation due to lack of precision due to total instability in the price of the dollar, construction companies are faced with the impossibility of carrying out a tender without reference prices anywhere and within the framework of an inflationary context that puts more and more pressure on it. So much so, to the point that the Santa Fe Construction Chamber (CAC) requested and agreed with the Municipality a suspension for an indefinite period of public works tenders pending as of July 7, due to the impossibility of bidding without reference prices. In 15 days they will meet again to monitor the situation. In this regard, Winkelmann stressed: “We are very concerned. Although we have been dealing with these problems of missing materials, missing prices, with all the related materials, products of imported origin, for some time now, it is much more complicated. Nobody wants to quote you as we do not have a reference price and thus it becomes impossible for us to prepare a tender. With this panorama, the construction referent from Santa Fe emphasized: «We made a formal presentation to the municipality last Wednesday, with a request for the suspension of all administrative acts related to calls for bids and other contracts that are to be signed, without giving time. no deadlines. In the morning we had a meeting with the mayor and part of his cabinet, they understand the proposal perfectly and we remained in an impasse for 15 days to get together later and see how the situation continues ».
Country Argentina , South America
Industry Construction
Entry Date 13 Jul 2022
Source https://www.construar.com.ar/2022/07/santa-fe-en-la-construccion-hay-buenas-expectativas/

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