Competition watchdog investigates building material price hike

The Romanian Competition Council, led by Bogdan Chiritoiu, will investigate the sudden price hike of building materials, the watchdog has announced.

During the COVID-19 pandemic, the construction market has been a driving force of the economy, but now the trend is leading to building material price increases, both within the country’s borders and abroad. This could trigger serious market disorder, the watchdog’s announcement reads.

The Competition Council will investigate the reasons for the price hike, as this represents a serious threat to public investment and prevents construction firms from submitting competitive bids in tenders.

The watchdog will also provide suggestions for preventing the negative effects of such a surge in building material prices, for both market players and consumers, Bogdan Chiritoiu said. Should the watchdog find any violation of market rules, criminal proceedings will follow. The first results of the investigation will arrive this autumn, according to the watchdog’s announcement.

The recent surge in building material prices has also triggered a wave of concern within the government, as local authorities have complained about the threat it poses to ongoing public investments. The spike in costs has forced local authorities to turn to‍ the government for help, asking leaders to adjust the contracted lump sums to current market prices.

Title image: Pixabay

Author: István Fekete