Contractors Union Threatens Protests if Government Ignores Its Demands

SadaNews - The Board of Directors of the Palestinian Contractors Union stated that in light of the exceptional economic circumstances facing the construction sector in Palestine, and the unprecedented and escalating increases in the prices of construction materials, energy, transport, and supply chains, this has led to a fundamental imbalance in the financial equilibrium of contracts and aggravated burdens on contracting companies, exceeding their capacity to continue fulfilling their contractual obligations according to previously agreed terms and prices.

The council emphasized in a statement that the continuation of project execution under the current increases, without fair and equitable treatment by the relevant government authorities, constitutes an unbearable burden on contractors and exposes national companies to significant losses that may lead to their failure or exit from the market.

It said, "If the government does not respond to the fair demands submitted by the union, primarily addressing price differentials and restoring the financial balance of contracts, the council will proceed with a collective decision to halt all ongoing projects, in accordance with legal procedures, while officially notifying the purchasing entities to preserve contractors' rights and prevent further losses."

The union announced a freeze on entering any future projects or new tenders until clear contractual guarantees are established to compensate contractors for any price increases, ensuring fairness in the distribution of contractual risks.

The council also called on all contracting companies to provide the union with all data related to ongoing projects, including financial status, completion rates, and the extent of impact from price increases, aiming to build a unified stance based on precise data that supports the legal and union actions to be taken.

It confirmed that the board is in permanent session, in direct and continuous coordination with the branch committees, to monitor developments closely and take necessary decisions and measures to protect members' interests.

The union announced its full readiness, through the board and branch committees, to receive complaints from contractors in all regions, work to follow them up directly with the relevant authorities, and provide necessary legal support and consultations to ensure the protection of members' contractual rights during this sensitive phase.

It emphasized that these measures are part of the legitimate defense of contractors' rights, based on established legal principles, primarily the principle of financial equilibrium of contracts and the theory of unforeseen circumstances, and that the aim is to protect the continuity of the sector rather than to disrupt projects, which requires urgent government intervention to rectify the situation.

The Palestinian Contractors Union reaffirmed its call for the Palestinian government to assume its national and legal responsibilities, and to take immediate and just measures to address the crisis, ensuring the continuity of project execution, and maintaining the survival and resilience of national companies.