The FPSC warned that an economic recession will become a certainty if the sector is not treated with care, in an open letter addressed to Parliament and the ministers of Finance, Transport, and Development.
The business environment in the construction sector warns that some of the measures proposed by the Government risk seriously affecting the sector's ability to deliver projects, including those financed by European funds and the National Recovery and Resilience Plan (PNRR), within the assumed deadlines and budgets.
This includes the risk of missing the target of 7.7% estimated for the construction sector's share of Romania's GDP in 2025 and its contribution of 3.7% to GDP growth.
Mihai Vrabie, President of the FPSC, said: 'The FPSC is very concerned with finding survival solutions and saving at least some of the companies involved in public contracts from composition, insolvency, or even bankruptcy, as they currently contribute to the state budget and employ a workforce, regardless of whether they are large companies or small and medium-sized enterprises.”
In this context, the FPSC is proposing measures to support the construction business environment without putting additional pressure on the budget.
The first proposal concerns the prioritisation of projects based on their physical stage and financing possibilities, also taking into account the number of contracts and their value for each company involved, with a view to avoiding the abrupt closure of some firms' activities.
They are also requesting the reduction of the warranty retention period after the final acceptance of works to a maximum of three years for new constructions and a maximum of one year for repair works.
Additionally, representatives from the construction business environment want to create a mechanism that would allow invoices issued for work completed on public contracts to be used by companies to secure future bank loans and other projects.
They also propose the creation of a state guarantee fund, accessible to companies involved in implementing public projects that must be completed by December 31, 2026.
Moreover, they suggest the cancellation of the 1% tax on turnover for companies with a turnover exceeding €50 million or the establishment of specific application criteria for the tax.
