<p>Contractors use personal contacts when acquiring contracts.</p>

Prague - Directors of construction companies consider personal contacts with clients to be the most important factor in acquiring contracts. Currently, 97% of them utilize this approach, according to the latest Quarterly Analysis of Czech Construction processed by CEEC Research and KPMG Czech Republic.
    "The main benefit of using personal contacts is, according to the company directors, timely and quality information. Information about where and when a particular contract will be prepared in the near future, which ensures them a competitive advantage and a greater chance of winning the contract," states the analysis.
    Construction company directors also appreciate long-term cooperation with clients. "This cooperation allows companies to engage in the preparatory process of contracts or even project preparation, and subsequently have a greater chance of acquiring the contract," the authors of the analysis note.
    On the contrary, builders assess the effectiveness of tender processes negatively, most often complaining about the excessively low prices that tenders have been concluding with recently. A major complication is said to be the lengthy process, which is further prolonged by potential appeals from unsuccessful applicants.
    "Another mentioned problem is the poor quality of project documentation, according to which companies are supposed to prepare and price their offers, which creates additional risks if they do not have the opportunity and time to thoroughly discuss everything with the investor. In contrast, during long-term cooperation with the investor and involvement from the project phase, many of these complications and risks are eliminated," is written in the analysis.
    Czech construction has been significantly impacted by the ending economic crisis, which saw it lose 443 billion crowns since 2008, equivalent to the turnover of an entire year. According to the latest analysis of statistical data, 41 larger companies went bankrupt during this period, yet up to 50,000 people lost their jobs in the sector.
    Statistics for the first months of this year, however, show that construction is catching a second wind. Construction production, partly due to favorable winter weather, increased by 8.4% in the first three months of this year. Builders also hope for improvements from the current government, which promised in its program statement to improve the state's investment policy and invest more in large infrastructure projects.