Daniel Noboa, who will take over as Ecuador’s president next month, has offered in his campaign to cut VAT on construction materials as a measure to reactivate the construction sector, an activity that creates new jobs and boosts related businesses. I hope the new president will focus on fulfilling this promise and restoring citizens’ safety. He promised to cut VAT from 12% to 5% on transactions of the listed inputs, which will also reduce costs “for those who want to do anything from redevelopment to a $700 million highway.” He also offered to implement his housing plan called Mi Linda Casa and provided mortgage loans with an interest rate of 4% for a period of 25 years.

Ten proposals that builders have given to President-elect Daniel Noboa to reverse eight years of slowdown in the sector

Everywhere, construction activity creates a production chain and a chain of employment with a great effect on the welfare of citizens, which begins with the exploitation of mines and quarries, and is connected with the industrial production of paints, waterproofing, sanitary products, glass, cement. , plaster, metal structures, among other components; in a process where architects, calculators, engineers, designers and administrators multiply the benefits of building for different uses. Obviously, public procurement has a great impact on the promotion of the sector and the economy in general, as long as government policies maintain the attractiveness of the private sector to provide its services, especially in the road infrastructure that the country needs to maintain the dynamics of transportation of products and people.

With more than a million dollars, Eternit opened a new polypropylene plastic roof factory in Quito

The effort promised by the future president, at least to reactivate public contracting, requires the support of appropriate regulations that remove the existing barriers of corruption and financial risks that discourage private contractors. They suffer non-payment of the amounts to which they are entitled when they fulfill their contractual obligations, despite the fact that they have been looking for a solution to such inconveniences for a long time, in addition to the fact that certain regulations threaten healthy competition and represent fertile ground for attracting offers of goods and services that could entail risk from money laundering of illegal origin.

Politics and the announced bad weather do not stop interest in buying a house: adaptations and relocations are offered in case of emergency

Recently, it became known that a certain municipal contractor, accused of the criminal offense of money laundering, was awarded several jobs in which the client did not pay any advance, and of course the offer of the successful bidder had priority because a reasonable advance was not requested.

‘I spent more than $400 fixing walls, roof and gutters’: El Niño warning prompts Guayaquileños to adapt their homes

The award of contracts without advance payment by a public institution is permitted by Article 25.2. of the Organic Law of the National Public Procurement System (since the reform published in the Supplement of the Official Register 311 of May 16, 2023). In doing so, it is mandatory to give priority to the offer of delivery of goods, works and services without an advance payment. This rule must have a text before the reform, and the executive power must request it among the first extraordinary economic laws. (OR)