| Work Detail |
The reduction in national investment in public works and the streamlining of municipal payments have generated an unusual phenomenon in bidding processes: in 60% of cases, construction companies submit bids below the official budget, with average discounts of 35%. This behavior is due to the lack of projects financed by the central government and the growing competition among firms seeking to remain active. In recent months, the number of bidders in municipal tenders has doubled. In a recent public tender for sewage works, 15 companies submitted bids, compared to five or six previously. Recent examples include the LED lighting tender, where the official budget was $1.376 billion, but the winning bid was $747 million (45% less); infrastructure in the Tablada neighborhood, awarded for $1.387 billion against a budget of $1.842 billion (24% less); and the purchase of supplies for health centers, with a bid of $43 million against an initial estimate of $62.6 million (30% less). The municipal government attributes this trend to shorter payment terms. Previously, construction companies faced delays of up to 200 days to collect, forcing them to include interest in their proposals. Currently, payments are made within 30 to 45 days, reducing the need for financial overruns. The president of the Argentine Chamber of Construction in Rosario, Mariano Schor, pointed out that the nations withdrawal from public works left many companies without large projects, forcing them to compete in provincial and municipal tenders, even reducing their margins to secure contracts. However, he warned that this strategy could lead to financial problems in the future, as occurred during the pandemic, when some companies offered low bids and were subsequently unable to sustain the work. At the provincial level, Santa Fe has become a focal point for companies from other jurisdictions, given its high level of infrastructure investment. Firms from Buenos Aires that traditionally worked with AySA are now competing in Rosario for sewage and sanitation projects. This has led large companies to seek participation in even smaller projects, diversifying their project portfolio given the lack of national options. Rosario currently has a significant volume of projects underway, including a plan for 300 neighborhood interventions, projects for the Tricentennial, and the Odesur Games. The municipality emphasizes that this model demonstrates that it is possible to maintain investment in public works, reduce costs, and ensure transparency in contracting processes, thus distancing itself from the national policy that has opted for drastic adjustments in the sector. |
