The volume of awarded public contracts in construction fell by 39%

Prague - By the end of July this year, public investors have awarded construction companies 2534 contracts worth 47.8 billion crowns. Their value decreased year-on-year by 38.9 percent, and the number fell by 28.3 percent. This is based on data provided to ČTK today by the engineering company ÚRS Prague.

"The decline is primarily due to the reduction in the awarding of large construction contracts, especially in transport infrastructure, in connection with the transition to a new programming period for drawing funds from European funds and also the unresolved issues regarding environmental impact assessments," said Zdeněk Kunc, director of engineering activities at ÚRS Prague.

The value of contracts for building construction decreased year-on-year by 25.2 percent to 13.7 billion crowns, while contracts for engineering construction fell by 43 percent to 34.1 billion crowns. The average size of a contract was 18.9 million crowns, 5.7 percent less than the average last year.

By the end of July, two large construction contracts worth over a billion crowns were awarded. The first was the modernization of the D1 motorway in the section Psáře - Soutice for 1.13 billion crowns. The contract was awarded to a consortium of Metrostav and Swietelsky construction. The second was the repair of the railway line in the section Opava východ - Olomouc main station for 1.03 billion crowns, which was awarded to Strabag Rail.

The largest contracting authority in the government sector was the Directorate of Roads and Highways (9.96 billion CZK), followed by the Railway Infrastructure Administration (6.57 billion CZK) and the Ministry of Finance (613 million CZK). In the municipal sector, the largest volume of contracts was awarded by the Vysočina Region (1.64 billion CZK).

By the end of July, 841 companies had won public contracts for construction work. The largest volume was won by Eurovia, which was awarded 90 contracts worth 1.66 billion crowns by public administration. For another 35 tenders worth 2.86 billion crowns, it will have a share due to its participation in a consortium with other companies.