Up to 60% of companies in the Czech Republic are building on the edge of a safe price

Prague - Nearly 60 percent of construction companies in the Czech Republic are building at the threshold of the so-called safe price, where it is still possible to hand over a quality and safe construction with a guarantee. This is indicated by an analysis of the Czech construction industry, which will be published in full by CEEC Research in mid-November. Speculation about dangerous cost-cutting during construction has emerged in connection with the tragic accident at a bridge construction site in northeastern Slovakia.
     "Many directors of construction companies confirm that the current crisis in the market, manifested by a lack of contracts and the associated efforts of investors to achieve the lowest possible prices, is forcing them in some cases to reduce the quality of construction work," stated CEEC Research director Jiří Vacek.
     According to the results of the research, construction companies are resorting to lowering the quality of work due to high pressure from clients to reduce the contract price. However, this can have the opposite effect for investors in the long term, resulting in a greater number of repairs, and thus significantly higher maintenance costs for the buildings.
     In July, 24 percent of construction companies confirmed that they were reducing the quality of buildings due to price pressure, as well as 40 percent of design companies. A similar study among construction companies was conducted by CEEC Research in Slovakia as well. There, this procedure in tenders, aimed at remaining price competitive and winning contracts, is confirmed by up to 42 percent of companies.
     In the Slovak municipality of Kurimany near Spišská Nová Ves, a part of a bridge under construction collapsed on Friday due to a failure of the supporting structure during pouring concrete. Four workers died in the accident, and another 12 were injured. Czech Minister of Transport Pavel Dobeš wants to have under-construction road and railway bridges checked in the Czech Republic in connection with the accident in Slovakia.