+421 917 44 66 88         This email address is being protected from spambots. You need JavaScript enabled to view it.           ensk

Value of Anounced Contracts for Construction Works Is the Lowest In Last Four Years

19 January 2017, Bratislava

From January to November 2016, investors announced a total of 2,828 contracts for construction works with a total value of EUR 1.88 billion and it is thus the lowest investment volume for the comparable period in the last four years, and thus for a period of monitoring. Trading activity in the completion of contracts has declined in recent months, but it still maintains a positive balance in numbers, as well as in the amount of awarded contracts. This results from the latest analysis processed by CEEC Research, the analyst firm, based on data provided by the Office for Public Procurement to the end of November 2016.

 In November 2016 contracting authorities and entities granted by a subsidy announced 66 contracts for construction works in the total value of EUR 50 million, which in annual comparison represents decline of 59.8 per cent in terms of number and 89.0 percent in terms of volume .

In the first eleven months of this year, a total of 2,828 tenders in the total value of EUR 1.88 billion was enrolled into the Journal of Public Procurement. While this, compared to the comparable period of last year, represents a stagnation in the number of orders (decrease of 0.2 percent), however, in terms of volume it is a one-third decline (33.5 percent). This is also the lowest number of orders for the last four years, i.e. for a period of monitoring (2012 – EUR 2.17 billion, 2013 – EUR 3.62 billion, 2014 – 2.33 billion, 2015 – EUR 2.82 billion). A higher number of contracts, while the current volume declines, is in the long term most likely associated with drawing finances from the funds under the Rural Development Program. "The fall in the volume of new competitions is definitely bad news for the future volume of real awarded contracts. Since there is nothing to compete until now, the influx of a larger volume of the awarded construction contracts can not be expected in the horizon of the next six months." Mário Červenka, Executive Manager, O.M.C. Invest.

Number and volume of completed procurements

Construction works Number Volume
number annual change in % volume in EUR mill. annual change in %
2012 2 030 . 2 340 .
2013 3 307 Ç +62.9 3 907 Ç +67.0
2014

2 822

È -14.7 2 517 È -35.6
2015

3 776

Ç +33.8 3 240 Ç +28.7
January - November 2016 2 828 È -0.2 1 880 È -33.5

Source: Journal of Public Procurement, calculations of the CEEC Research

From the above public procurements, 38 per cent were completed and awarded to construction companies. That represents only 15 percent of the total volume of the total value of EUR 287 million.

Actually, the contracts have been awarded in the total value of EUR 248 million, i.e. 14 percent less than was their original value in the statement. After deduction of the previously completed and canceled tenders (about 8 percent of the amount of declared contracts), at this time, in the process of procurement remains contracts in the total value of EUR 1.44 billion.

From January to November this year, 2 064 public procurements overall in the total value of EUR 1.54 billion were completed by investors and awarded to concrete suppliers, which in annual comparison represents slight three percent (3.3 percent) increase in the number of completed contracts and tenth (12.1 percent) increase in their volume. "Last year, at least completing of existing selection procedures was successful, number and volume of awarded contracts increased slightly. But it is feared for the year 2017 that due to the ongoing decrease in the selection procedures, the situation in the field of public contracts will deteriorate." Jiří Vacek, Director, CEEC Research.

The current situation is significantly influenced by a contract from the ŽSR (Slovak Railways) sponsor from July 2016 (Modernisation of the track Púchov - Žilina) in the total value of EUR 365 million.

Number and volume of completed procurements

Construction works Number Volume
number annual change in % volume in EUR mill. annual change in %
2012 2 007 . 1 441 .
2013 2 655 Ç +32.3 2 598 Ç +80.3
2014 2 004 È -24.5 2 413 È -7.1
2015 2 302 Ç +14.9 1 671 È -30.8
January - November 2016 2 064 Ç +3.3 1 541 Ç +12.1

Source: Journal of Public Procurement, calculations of the CEEC Research

The latest forecasts of the construction and project market can be found at

www.ceec.eu

Media contact:


Ing. Jiří Vacek, Ph.D., MIM
Company Director
CEEC Research s.r.o.
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
Tel.: +420 774 325 111

CEEC Research is the leading analyst and research company focusing on the development of selected segments of economy in the countries of Central and Eastern Europe. Our current studies are used by over 17.000 companies around the world. CEEC Research was established in 2005 as the analyst organisation specialised in research processing and building sector analysis, after that the analytic coverage has extended to other selected sectors of economy, including the engineering.

CEEC Research in addition to regular free analysis also organizes meetings of selected sectors leaders, involving CEOs of major companies, chairmen of key companies, presidents of key unions, guilds and chambers as well as ministers and Heads of State of selected countries.