The prices of construction works are a third lower than the projected this year

Prague - The value of awarded construction contracts is, on average, 31 percent lower this year than their project price. Just last year, the price for construction contracts in a public tender decreased by 22 percent compared to the expected price. This is indicated by an analysis published today by the Chamber of Public Procurement Administrators (KAVZ).
    An example is the contract for the reconstruction of the Olomouc railway station, which was expected to cost 2.5 billion crowns. However, the winning bid was 1.9 billion crowns, which is 24 percent less. Similarly, the price for the construction of the International Clinical Research Center in Neuropsychiatry fell from the expected 471 million crowns to "awarded" 305 million crowns. This is 35 percent less.
    This is related to the drop in the expected value of public tenders for construction contracts announced this year. From January to September, authorities announced 2.1 thousand construction contracts, which is an increase of 39.8 percent year-on-year. However, their expected value is 78.1 billion crowns, which represents a year-on-year decrease of 27.9 percent.
    During the same period this year, authorities awarded 33 percent more construction contracts. The year-on-year increase was caused by an amendment to the Public Procurement Act that took effect last April, which lowered the threshold for construction works requiring a public tender from six to three million crowns. In contrast, the value of awarded contracts has decreased year-on-year by six percent to 66.2 billion crowns.