Middle East crisis: The FNTP welcomes the publication of the Prime Minister's circular to secure the execution of public procurement contracts

Since the start of the crisis, public works companies have been hit hard by rising energy and material costs, without necessarily being able to pass these costs on to their clients. With increases of over 65% in the price of bitumen and over 70% in the price of off-road diesel, the economic balance of contracts has been disrupted.

According to Alain Grizaud, President of the National Federation of Public Works: “This circular was eagerly awaited by public works companies, and it is the result of continuous lobbying by the FNTP with the Government. Since the beginning of the crisis, we have been raising the alarm about the very real impact of rising energy and material costs on our businesses. This document finally provides solutions to prevent markets from becoming unsustainable and companies from operating at a loss.”

This circular reminds us of the obligation to include price revision formulas in contracts and opens the possibility for companies to start discussions with their clients on taking into account the additional costs they have to bear.

However, the circular will only produce the desired effects if it is accompanied by political will on the ground. The FNTP therefore calls on local authorities to fully embrace this document and expects prefects to support businesses in their regions to ensure the swift and pragmatic implementation of these measures.

The FNTP will remain fully mobilized in the coming weeks to support member companies in the face of the crisis, monitor the implementation of the circular and report without delay any blockages observed on the ground.