Construction Minister Ivan Paladina said on Thursday the ministry would propose and the government was expected to adopt next week a conclusion to mitigate the effects of higher prices of construction material and contracted works.

Paladina was speaking to the press in the coastal resort town of Opatija, where he opened the 16th Days of the Croatian Chamber of Civil Engineers (HKIG).

Asked if the construction sector would survive the slow procurement and growing prices, which was discussed at the event, Paladina said he was confident the conclusion his ministry would propose to the government would provide a basis for public clients to recognise the price differences in line with the laws on contractual obligations and public procurement.

That, he added, will be a big relief for contractors.

Asked about the labour shortage in construction, Paladina said there was a shortage in most European countries. The problem is being dealt with by importing labour and no changes can be expected in the period ahead, he added.

Investment and tender amounts have never been bigger for projects financed from the Solidarity Fund, the National Recovery and Resilience Plan, the previous and the 2021-27 EU budget, and the state budget, he said.

The fact that so many construction projects are being realised shows that the capacity is there, he added.

Speaking of wages, Paladina said they were a matter of the market, construction companies and workers.

Recently it seems that many of our workers are coming back from abroad because of the higher wages, he said, adding that he hopes the process will pick up if wages continue to increase.

HKIG president Nina Drazin-Lovrec said the problem of higher prices should be considered by looking at the whole sector and all stakeholders.

The 16th Days of the Croatian Chamber of Civil Engineers are taking place on 9-11 June, with nearly 1,500 civil engineers in attendance.