Price adjustment mechanisms


Over the last few years, contractors in Europe have been faced with significant supply chain disruptions in addition to price increases for energy or for certain construction materials. As a result, many are no longer able to participate in public tenders and construction works have slowed down while some companies even faced bankruptcy.

To add to this problem, in several Member States contracts do not sufficiently take into account price increases in the case of firm ,non-revisable price contracts, and clients continue to enforce completion deadlines in the absence of a clause, in particular a review clause, allowing automatic extension of the deadlines.


The European Commission should issue a guidance document aimed at encouraging Member States to consider price revision mechanisms that adequately take into account the specificities and complexity of each construction project, in situations where contractors cannot take the risk for price escalation over the contract term.