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Stricter rules for highway construction firms

CONSTRUCTION firms will have to abide by stricter regulations for building roads and highways. The new rules stem from a cabinet decree issued in the first week of November, the daily Pravda wrote.

Under the new rules the Construction Ministry is trying to prevent price hikes during highway construction as well as introduce a greater level of efficiency.

Until now, construction firms were able to increase prices each year according to the so-called indexes, which reached from 6 to 10 percent of the original highway price. Discussion on price changes will be allowed only if a delay in construction is the fault of the state as an investor.

Construction firms are not happy with the decree. "Firms will have to take up the risk of inflation, or construction material price changes," said Dušan Mráz, the head of the largest Slovak construction company, Doprastav.

Firms say that they will have to bear the whole risk of construction for two - three years themselves, which may lead to an increase in the value of bids in highway construction tenders.

Compiled by Marta Ďurianová from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.

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