Jorge Veloso noted that the issue is predominantly occurring in Lisbon and Porto. However, this lack of interest has also been observed in other regions, such as Coimbra, where he is mayor and was elected by the PS.
“There are a lot of projects ready for execution, and companies can’t keep up because there’s too much demand due to the Recovery and Resilience Plan [PRR], especially in the housing sector,” he emphasized, highlighting that sometimes, depending on the value of the project, direct adjustments can be made, yet still, there are no companies with sufficient capacity to handle the necessary workload.
The mayor pointed out that the problem has been present for some time, although it has worsened in recent months “with all the urgency to spend the money involved in the PRR.”
In addition to parish mayors, municipal leaders like Braga’s Ricardo Rio (PSD) report “alarming signs” about the current market conditions that could jeopardize the completion of projects tied to European fund financing.
To mitigate the risks of unsuccessful tenders, the northern municipality’s president suggests establishing base prices above market values, extending execution deadlines, and ensuring payment periods do not exceed 60 days.
He also advocates for the adoption of construction systems that do not require significant technical specialization, meaning the use of standard market materials, thereby avoiding supply chain disruptions and delivery timeframes.
Rio further recommends the utilization of prefabricated and/or modular systems, “which also considerably reduce the need for subcontracted labor.”
The pressure from PRR projects also impacts regions like Alentejo, where local companies, “being smaller and not required to comply with all the bureaucratic demands of the Public Contracts Code for private works, prefer to work for individuals. It’s simpler and often yields higher profit margins,” stated the mayor of Montemor-o-Novo, in the Évora district, Olímpio Galvão (PS).
This view is shared by the deputy mayor of Loulé, in the Faro district, David Pimentel (PS). According to him, there is “greater demand for private projects, which do not have as many legal rules and requirements as public tenders, compounded by the shortage of labor, particularly specialized workers. Additionally, contextual costs are higher in the Algarve, especially in the housing sector.”
