The problem affects public and private building projects. | Marcelo Sastre
Builders in the Balearics are considering "abandoning" work because of the rising cost of building materials. Sandra Verger, CEO of the builders association in the Balearics, says that they are studying terminating contracts because the penalties for doing so are lower than the extra cost of materials. In certain instances, this additional cost is more than 20 per cent. Building companies have been dealing with this situation since the middle of last year, but it is has been exacerbated by the war in Ukraine.