<p>Building designers complain about low prices for contracts and bureaucracy.</p>

Publisher
ČTK
09.09.2014 17:00

Prague - Building designers complain about very low realization prices for contracts, which often go below the actual costs of these projects. They are also troubled by significant bureaucracy and a lack of both public and private contracts. This results from the 2014 Study of Project Companies conducted by the analytical company CEEC Research and the firm SGCP.
    Undercost prices for public contracts are a key problem according to 97% of the directors of project companies. "The situation persists where the only criterion for selection is the lowest bid price. Many companies are forced to offer work below the actual costs of the contract. Quality and client satisfaction then become a secondary issue," stated the commercial director of Ruukki, Branislav Bačo.
    According to him, insufficient pricing of project work is especially dangerous for the successful completion of the project and its quality. "The lack of funds forces a reduction in the time invested in design, as well as the search for inadequate and untested technical solutions. These are often demanded from material manufacturers and end suppliers as well. Such poorly conceived buildings carry their 'diseases' throughout their entire lifecycle," warns Bačo.
    The director of CEEC Research, Jiří Vacek, identifies mainly the contracts from previous years as problematic; he claims that the situation is currently starting to improve. "The pressure is not as great anymore, at least in some areas of project contracts, such as railway construction. Companies are struggling mainly with contracts acquired from previous years, which, in order to secure at least some work for their employees, they were sometimes willing to take even at a loss. However, these losses have now caught up with the companies and are causing problems with cash flow and sometimes even solvency," claims Vacek.
    Designers also criticize excessive state bureaucracy and poor legislation. This is confirmed, for example, by the commercial director of Prodin, Jiří Nesl. "The biggest problem I see is the extreme administration of tendering for contracts, and regarding the actual preparation of buildings, it involves very complex negotiations and often contradictory positions of participants in the proceedings. Likewise, complex approval processes are not exactly beneficial," Nesl believes.
    A similar opinion is held by the chairman of the board of Arcadis CZ, Václav Hořejší. "The key problems remain the same: nonsensical legislation - primarily the veneration of the lowest price, bureaucratic ownership from officials due to fears of immediate criminalization of any their decisions, and the instability of public administration - particularly key investors," criticizes Hořejší the current state.

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