Price compensation: the MIT decrees subject to rectification
The decrees subject to rectification are:
- decree of 20 May 2019: a change was introduced to Annex 1 which reported the findings of the average prices for the year 2017 and the annual percentage variations, increasing or decreasing, exceeding ten percent, relating to the year 2018;
- decree 11 November 2021: introduced a correction to Annexes 1 and 2, which reported the findings of percentage changes, increasing or decreasing, exceeding eight percent, which occurred in the first half of the year 2021.
Why a correction?
These measures arise following complaints presented by ANCE (National Association of Building Contractors) against the original decrees, which ended with the judges’ recognition of anomalies in the price collection method used by the MIT.
The dispute concerned misalignments between ministerial data and the real market trend for some key materials.
Following the rulings in favor of ANCE, the Ministry was forced to conduct a further investigation, comparing its findings with the data provided by sources such as Istat, Providers And Chambers of Commerceas well as from national and international reference databases.
The appeal relating to the decree concerning the second semester 2021 is still ongoing and the related litigation is pending on appeal. The Ministry will announce any updates and further measures as soon as they are available.
The materials affected by the rectification
The rectification concerned the following materials.
- Year 2018 compared to 2017: bitumen.
- First semester 2021 compared to previous years: 16 materials. Here is the list:
- smooth, flat, striated steel sheets of any thickness;
- “Corten” steel sheets
- galvanized steel sheets for plumbing (gutters, downspouts and related accessories)
- steel strips for products and road barriers, including galvanized
- manhole covers and drains in ductile cast iron
- seamless iron pipes for reinforcement of geostructural interventions
- longitudinally welded steel pipes
- Seamless black steel pipes
- PE 100 high density polyethylene (HDPE) pipe
- rigid PVC pipe
- corrugated polypropylene pipe for electrical systems
- copper pipes for plumbing systems
- timber for window frames
- undersized fir lumber
- steel fibers for the reinforcement of shotcrete (shotcrete)
- bitumen
In almost all cases, the adjustments made resulted in a increase to price changes, with the exception of undersized fir lumberfor which a was applied reduction compared to the previously established values.
Deadlines for submitting compensation requests
The companies involved must submit a request for compensation to obtain the correct amounts, net of any amount already received, respecting the deadlines set:
- March 5, 2025 for the bitumen relating to 2018, pursuant to art. 133 of Legislative Decree 163/2006;
- January 19, 2025 for materials from the first half of 2021, pursuant to art. 1-septies of Legislative Decree 73/2021.
How to calculate compensations
The requests must refer only to the materials indicated in the decrees and used in works accounted for in the reference periods. For the calculation of compensations, the following thresholds apply:
- 10% for changes relating to 2018;
- 8% for changes in the first half of 2021, with offers presented in 2020;
- 10% overall for percentage changes regarding offers prior to 2020.
