Italy to help contractors deal with material costs

Italy has agreed to implement measures to aid construction companies overcome the challenges of recent materials price rises.

The government says it has earmarked €100 million to use as compensation for contractors working on public projects.

The move comes as strong demand since the beginning of the year, along with issues with the global materials supply chain – largely caused by the coronavirus crisis – have combined to force prices up.

The budget committee of Italy’s lower house of parliament approved the scheme that will see firms eligible for compensation if prices for construction materials required for a project are shown to have risen by more than 8% since the beginning of the year.

The latest move follows the earmarking of €1 billion last month, to aid the nation’s construction industry as the impacts of Covid-19 continue to hamper recovery.