The government details the new support measures for construction companies

Publication of a circular specifying the procedures for taking into account the consequences of the crisis in the context of public procurement

The shortage of raw materials and the rise in supply prices are likely to have consequences on the technical conditions for the performance of contracts.

A circular will specify the procedures for modifying public procurement contracts when necessary for the continued performance of services. This circular will also specify the procedures for applying the theory of hardship to public contracts. Finally, this circular will encourage public actors to suspend contractual penalties and to insert a price review clause in all future public procurement contracts.

Acceleration of the publication of construction indexes

The construction indexes are currently published 80 days after the end of the month. These indexes will now be published 45 days after the end of the month in order to update commodity prices more quickly in the execution of contracts.

The new methodology will apply at the beginning of May by updating the indexes for the month of February; the indexes for March will be published in mid-May instead of mid-June.

Reactivation of crisis cells

In each department, the construction crisis cells (provided for by circular D20016941 of November 27, 2020) will be reactivated, bringing together, under the aegis of the Prefects, the professional federations of the sector, the local distributors and industrialists and the principals public and private to provide a space for consultation on issues of tension for the sector.

In addition, in each region, a "resilience referent" will be appointed to lead the networks of actors whose mobilization is essential, and to ensure regular monitoring and remove any difficulties likely to slow down activity.

Implementation of temporary aid for public works companies

Small and medium enterprises^[1] public works, particularly affected by the rise in the price of non-road diesel, which has increased more significantly than road diesel, will benefit from specific aid. This aid, totaling €80 million, will be paid in one go and will be prorated to the turnover of the eligible companies. It will partly offset the rise in RNG prices with the estimate that RNG costs represent on average 2,5% of the turnover of companies in the sector.

It should be noted that construction contractors also benefit from the 15 cents/litre discount that applies to GNR.

Reform on the GNR

The Government takes note of the professionals' request to postpone the reform abolishing the tax advantage on GNR, which should in principle come into force on 1 January 2023. At this stage, the conditions are not met to open this subject, which requires a finance law. Given the increase in prices, the Government recognizes, however, that the conditions for implementing this reform are no longer met and that it will be up to Parliament to establish a timetable in the next budget law.

^[1] Company which employs fewer than 250 people and whose annual turnover does not exceed 50 million euros or whose balance sheet total does not exceed 43 million euros.