The economic crisis also affected them: 10,000 public contractors were banned
Mehmet Salih General, Vice President of the Public Contractors Platform, stated that public contractors have been experiencing difficulties since 2021. The general continued his words as follows;
“THE PREDICTIONS WERE NOT FULFILLED”
*When we do public works, we generally make contracts with fixed prices. By predicting them, we adjust our prices according to the currency forecast and the central bank’s year-end inflation forecast. But the exchange rate prediction for 2021 was not fulfilled.
*The inflation prediction was also not fulfilled. The economic difficulties we experienced with the pandemic peaked with the war between Russia and Ukraine. And while the foreign currency was 9.10 TL, the Central Bank’s year-end forecast increased to 18 TL.
*This increased construction costs very quickly. Prices of construction commodities rose rapidly. Public contractors can no longer do business.
“THERE IS GREAT PUBLIC DAMAGE”
*For example; While iron prices were 7,130 TL in 2021, they are now 20,000 TL. While the price of a cubic meter of concrete was 230 lire, it is now 2,000 lire. While the price of cement on the stock market was 40 TL, it is now 430 TL. While diesel fuel used to cost 8 lira per liter, it now costs 38 lira.
*While the minimum wage was 2,800 liras, it is now 11,400 liras. In other words, it is not possible for us to do or complete the work we purchased at these old prices.
*This situation also causes great harm to the public. Serious public damage occurred. Because contractors cannot complete their work at these prices. When they don’t complete it, the 6 percent guarantee they give is recorded as income.
*These works are put out to tender again. The bidder who offers 4, 5 or 6 times the price wins the bid. And great public harm occurs.
“10 THOUSAND CONTRACTORS BANNED”
Stating that 10 thousand contractors were banned because they could not fulfill their obligations due to rising exchange rates, General Mehmet Salih continued his words as follows:
*There is a lot of construction activity in our country due to the problems experienced during the earthquakes of February 6. All qualified personnel went to the earthquake zone.
*We have a shortage of qualified personnel. Therefore, we are requesting extensions of time so that we can complete our work. We want severance rights for our friends who are still at work. And since 2021, 10 thousand contractors have been banned because they have not been able to fulfill their obligations due to rising exchange rates.
*We demand a record amnesty for these contractors to return to the industry. We are really trying to do everything we can to ensure that public investments do not stop, but continue.
*We want our government to help us in this regard. In fact, after the earthquake, many public buildings were subject to reinforcement works.
*These include hospitals and schools. But public contractors cannot participate in these works. These tenders are canceled because public contractors do not submit prices. We want these four requirements to be met for the continuity of public affairs.