The state has accelerated the preparation of constructions this year, there are more tenders for projects

Prague - The number of tenders the state has announced this year for project work has increased year-on-year by 85.3% to 189. In the first seven months of this year, government institutions have prepared tenders worth 2.4 billion crowns, which is a year-on-year increase of 79.6%. This is according to an analysis conducted by the analytical company CEEC Research, which is available to ČTK.
    This year marks a reversal of the trend from previous years, when construction companies complained about a lack of work as the state, the largest investor, had suspended the preparation of construction projects. Only in July did public institutions announce tenders for project work worth 174 million crowns. This reflects a year-on-year increase of 11.9%.
    Of the tenders announced this year, winning firms have so far secured five percent of the volume, or 120 million crowns. The other tenders have not yet been completed. However, the designers offered prices on average 35% lower than the announced value, so these contracts will cost public investors 78 million crowns.
    "The idea that the money saved will return to the state treasury is too shortsighted optimism because this long-lasting trend results in a persistent undervaluation of highly specialized project performances," warned Pavel Rada, chairman of the Supervisory Board of the Czech Chamber of Architects. "The professional quality of project activities is rapidly declining, leading to an increase in extras during the construction process," he added.
    According to designers, the state must reckon with the fact that such savings are unlikely to be achieved in the future. "Given the increase in the number of tenders and the rise in state investments into projects, we expect a gradual increase in prices, which will more closely approach the anticipated values or even exceed them," predicts Lukáš Hruboň, director of the project company Valbek.
    However, investors have already canceled a portion of the tenders announced this year, affecting one percent. In terms of value, this amounts to tenders worth three million crowns.
    When including tenders announced in previous years, public investors have canceled 282 contracts this year, which is one-third (33%) more than last year. Their value has increased by 153 percent compared to last year to 2.2 billion crowns.
    "A key indicator for the entire construction sector is the actual realization of announced public contracts, and I view very positively the significant increase in both the number and value of completed contracts for project work compared to last year. This indicates that the preparedness of public constructions is rising, which will surely help the construction sector," stated Karel Köszegi, managing director of Cemex Czech Republic.
    In addition to the state, private investors also employ designers. "In the private sector, the number of contracts is increasing primarily from developers. Low interest rates are driving demand for apartments for both personal and investment housing," added Mário Červenka, director of O.M.C. Invest.