Construction Company Woe in Mallorca
The Association of Balearic Constructors announced last week that there has been a marked lengthening of payment terms by developers, and the halting of a number of projects, as a consequence of the slowdown in demand and anticipated corporate liquidity problems. President of the Association, Sebastia Pastor predicted that 2008 would be "significantly worse" than 2007, a year in which construction expenditure stood at 2,863 million, 5.35% less than the previous year. In a call for help to the gathered political dignitaries the President asked that public authorities seek to settle outstanding payments to contractors in order to alleviate the construction companies own liquidity problems. He also called on new regulations for construction activity in the main tourist resorts, which currently is almost totally paralysed throughout the high season, to allow some works. Finally he called for an official Register of Construction companies, requiring minimum standards to be met, as a way of tackling the increasing use of illegal and unregistered individuals and companies operating in the black market.
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