CONTRACTORS: Projects in public-private partnership are needed

The general feeling of insecurity, generated among construction companies by Romania's economic instability in recent years, outlines a new year of regression for the local profile market. The problems still maintain the same, as well as the risks related to the payment of claims to contractors, the obstruction of the funding for started or new projects, amid the severe and continuous contraction of the sector in the last four years, etc. The main problems faced by contractors last year - such as late payments, the lack of transparency in the allocation of work, the altering of the billing mechanisms due to the payment in advance of VAT, the inability of the authorities to promote public-private partnership projects or the dramatic decline of foreign investments - seem to remain unchanged this year. Moreover, the state budget was approved very late and it includes elements of austerity which do not create favorable conditions for the construction activity during this year. Overall, the premises at the beginning of the current year do not allow predictions that the recession will be left behind this year. Thus, the role of public funding will remain essential for construction companies. In this context it becomes particularly important to supplement the funding sources by implementing public-private partnership projects, especially because the occlusion of public investment in 2013 is a risking gamble both in socio-economic and political terms. Through its various authorities, the Government has, therefore, to take real steps to exit from recession as quickly as the construction market because the industry has multiple effects on the economic and social aspect. The main danger of a new failure in the field this year may affect the long-term competitiveness of construction firms and their ability to engage in projects financed from structural funds in 2014-2020. For further information and a detailed analysis of the current Agenda Constructiilor issue click here!