The surge in costs, linked to the international crisis, is now affecting public procurement within the Vitoria-Gasteiz City Council. The escalating prices of raw materials and supplies are putting significant pressure on municipal tenders, to the extent that some bids may be left vacant or require price revisions to attract companies. This was confirmed this morning by Beatriz Artolazabal, Councillor for Public Space and First Deputy Mayor, in response to press inquiries.
Artolazabal acknowledged that some of the issues encountered in ongoing works are related to “the increases in costs” borne by companies and “all the circumstances happening in the world.” This highlights how external tensions are no longer confined to markets or geopolitics but have a direct impact on municipal management.
As explained, some contracts fail to generate sufficient interest among companies because the initial price does not offset the rising costs of materials, energy, transport, or labor. When this occurs, the tender may be left vacant, forcing the City Council to re-tender with higher amounts.
Wars are not innocuous.
A clear example is asphalt paving projects, as asphalt relies on petroleum derivatives. Any external disruption related to crude oil can affect the final cost of these works. In fact, the City Council already recognizes that the escalation of prices is generally impacting its public contracts. Furthermore, the precedent of the Ukraine conflict was cited as an instance where similar price tensions were felt, connecting that experience with the current context and the behavior of suppliers and raw materials during this period of international uncertainty.
