Contractor Amnesty Request

Erdal Eren, President of the Turkish Contractors Association (TMB), demanded that contractor companies that were sanctioned in the profession, unable to continue their work due to cost increases, be included in the scope of the regulation. law for the restructuring of public companies. debts

Eren, in his written statement, explained that contractors doing business with the public were unable to continue their work in the 2020-2022 period due to rising input costs under extraordinary conditions.

Stating that severe increases in input costs had negative effects on the sector during the epidemic, Eren stated that the increase in import-dependent input costs and energy continued with the effect of the Ukraine-War. Russia.

Noting that the average price increase of the sector’s prominent inputs in the period January 2021-November 2022 increased to 170 percent, Eren stated that with the problems of appropriation and payment in public works, contractors became unable to bear all this burden

Calling attention to the situation of the contractor companies, who were forced to burn their letters of guarantee and thus were penalized in the profession for not being able to cope with the cost increases, Eren demanded that these companies be included in the scope of regulation. Prepared by the Ministry of Treasury and Finance, which includes the steps for the restructuring of the debt with the public.

‘COMPANIES CANNOT ENTER THE TENDER’

Recalling that the public made price difference arrangements twice last year to find a solution to cost increases, Eren said, “Contracting companies that cannot continue their business due to the aggravated conditions of the epidemic are granted them the right to liquidate if the project completion rate is 15 percent or less, but the additional price difference formula and low compliance criteria determined for liquidation was unfortunately delayed in resolving the issues of the contractors. At this point, many contractors, unfortunately, were unable to obtain the right to liquidation because the project completion rate was over 15 percent, and they were unable to continue their work and had to burn their letters of guarantee.” he used his statements.

Eren pointed out that many small and medium-sized contracting companies, unable to afford cost increases, especially in Anatolia, were penalized and unable to participate in tenders again and were unable to do business, saying:

“The aforementioned contracting companies must also be included in the scope of the regulation, and the opportunity for one-time amnesty and return of letters of guarantee must be given. This step will remove a major bottleneck in the industry. I submit this issue to the appreciation of our President and the Minister of Finance and Treasury and I would like to underline that we expect your constant help from us on behalf of our companies, which are in a difficult situation and spread throughout Anatolia.” (AA)