PRICE ADJUSTMENTS AND TERMINATION RIGHTS NEEDED FOR CONTRACTORS WORKING WITH PUBLIC SECTOR

Eskişehir Chamber of Commerce (ETO) President Metin Güler emphasized the need to provide contractors working with public institutions with price adjustments and a penalty-free termination option due to the sharp rise in global commodity prices.

ETO President Metin Güler highlighted the difficulties faced by contractors working with the public sector as global commodity prices surged due to disruptions in the supply chain from the Covid-19 pandemic and the recent Ukraine-Russia conflict. Güler noted that essential materials for the construction industry, including steel and cement, have seen price increases of up to three or four times, making it challenging for contractors to procure materials and manage costs effectively.

These Commodity Prices Are Making Business Difficult

To address these challenges, Güler called for price adjustments for public contractors and the option of a penalty-free termination. He emphasized that the unpredictable rise in commodity prices has made it increasingly difficult for construction firms working with the public sector to sustain their operations.

Additional Time Should Be Granted to Public Contractors

Güler pointed out that contractors across the board expect price adjustments and the right to terminate contracts if necessary. He urged the government to take swift action, noting that firms fulfilling their contracts in good faith are struggling due to global price hikes. He added that allowing additional time for these contractors could prevent potential bankruptcies by alleviating the challenges they face.