6.24 Provisions

General

Provisions for such things as losses on work in progress, warranty obligations, restructuring costs and environmental risks are recognised if Heijmans has an existing obligation and it is probable that an outflow of resources will occur. The amount of each provision can be reliably estimated. The provisions are stated at face value, unless the time value of money is material.

x € 1,000

31 December 2021

Reversal of unused amounts

Additions to provisions

Provisions used

31 December 2022

Wintrack II

34,000

-19,000

0

0

15,000

Work in progress losses

11,543

625

11,540

-8,138

15,570

Warranty obligations

32,315

-2,382

9,760

-7,055

32,638

Restructuring costs

1,316

-292

1,813

-1,896

941

Environmental risks

2,587

0

243

0

2,830

Provision for loss-making interests

2,843

-2,477

0

0

366

Other provisions

1,655

0

488

36

2,179

Total provisions

86,259

-23,526

23,844

-17,053

69,524

Ageing of provisions

x € 1,000

31 December 2022

31 December 2021

Non-current portion

45,106

64,303

Current portion

24,418

21,956

Total

69,524

86,259

Wintrack II

For further details of the provision for Wintrack II, see note 6.30 Management estimates and judgements.

Work in progress losses

If a contract with a client for the execution of a project shows a loss, the entire amount of the loss is immediately recognised in the statement of profit or loss and included as a provision for losses on work in progress in the provisions in the statement of financial position. The projects to which these losses relate will be completed within two years.

Provision for warranty obligations

The provisions relate to complaints and deficiencies that become apparent after the delivery of projects and that fall within the warranty period. The magnitude of the costs provided for is dependent partly on the estimated allocation of the claim to the related construction partners. It is expected that most of the obligations will materialise in the next two years.

Provision for restructuring costs

The provision for restructuring costs relates to the expected severance costs related to organisational changes. Most of the provision will be used in 2023.

Provision for environmental risks

This item represents possible site reinstatement costs. The costs have been estimated by site, based on government regulations concerning the clean-up method and soil investigation. The periods within which restoration needs to take place vary by site. In the event that the restoration does not have to take place for another few years, there is an obligation to monitor the pollution. The expected monitoring costs have also been included in the provision.

Provision for loss-making interests

The provision for loss-making interests relates to joint ventures in which the Group’s share is negative and for which the Group has guaranteed all or part of the liabilities of that interest (or has the firm intention to enable the interest to pay (the Group’s share) of its liabilities).

Other provisions

The other provisions as at year-end 2022 were largely made up of a provision for year-two sick pay.

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