Intermoney | ACS (ACS) and OHLA (OHLA), contracters in the state of Maryland (United States) involved in the construction of a light train in the metropolitan area of Washington, will see their budget for this project increased by 1.2 billion euros. This will address the rise in prices which has happened since the contract was tendered, according to the daily newspaper Expansion.
The initial budget was 1.743 billion euros. Maryland wants to avoid another paralysation of the works, which were already affected by the inability of the initial contracting company Fluor. It is hoped that the Spanish firms can begin to work this spring on the project which is due to be finished in 2026.
Valuation:
This news is an example of the fact that, although inflation is always a downside in significant works contracts, it does not necessarily affect the profitability of the contracts, since these usually have the variations in the price of materials covered. That said, in Spain the Administrations can see themselves affected by not being able to sufficiently increase the budgets. It comes as no surprise that the National Construction Confederation estimates some 500 works have been paralysed for this reason. The contracts already tendered usually include clauses related to the revision of prices, but the Administration can paralyse the works if it considers that appropriate.
