Let’s build cheaply, quickly, but mainly to a high standard
Constantly circulating news about the global crisis have now probably been heard by every schoolchild. However, we slowly have to get used to its ugly results, when one sector after another is sinking.
Construction is no exception. The negative impact of the crisis started to appear here with the stagnation of production as early as 2009. Then, the year-long decline caused by the shortfall in structural engineering in the first quarter of 2009 was enough to open the gates of hell. Construction companies, one after another, are losing contracts. Private companies are restricting investments, elsewhere the state is resisting to announce public contracts.
More gloom is to come. A couple of months ago, construction output fell by almost one half. Companies are laying off staff, and we can only realistically expect recovery in the field next year.
Construction is essentially a sloth amongst the sectors, and it will take longer to shrug off the crisis. Meanwhile, with its eight-percent share in GDP and employment, this field is an important element of the economy.
However, if I study it closely, some companies can only blame themselves for this seemingly hopeless situation. The numbers go hand in hand with the (non-)market conduct of the firms themselves, who had grown accustomed to the easy earnings they gained from contracts without even having to try. Contracts then disappear very easily and with them the good reputation of the field.
One only needs to read newspaper articles from time to time about the overpriced public contracts which drag on and increase in price on a daily basis. The quality of the construction work is also often criticised.
So I put forward this question: Could it not be cheaper and quicker, without losing out on quality?
I am not saying that this is a universal cure for all the ills of the Czech construction industry. On the contrary, it is an interesting challenge. Fortunately, there are an increasing number of projects which can say yes to this question. You just need to think a little about the coordination and technology, and then the builders complete the work in ample time without a hitch.
I believe that this approach to projects will become more frequent. I do not have to add that we cannot bypass quality infrastructure, because it is the foundation of any functioning economy. An empty treasury and the drying up influx of money from European funds have put the brakes on construction work.
Perhaps PPP projects will finally get a chance. They could be the real challenge for companies, not only to lower their prices, but also to examine their efficiency.
Maybe it will be possible to work more economically, quickly and still keep the high quality. Where there is a will, there is a way.
Jan Bláha,
Commercial Director, Zevyp
Date: 30. November 2010, 09:20
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