Cost analysis for balanced investment decisions: a client event
In September 2019, Bilfinger Tebodin held a business seminar on the topic ‘Construction Cost Analysis: trends and experience in CEE industrial investment’.
The market is changing constantly. To keep our clients update on those changes, our experts analyse the construction market annually, giving an overview of trends, price dynamics across the countries and vision for future developments. This time Lucie Kybalová, Martin Dittrich and Michaela Nováková shared their experience in Prague, the Czech Republic.
The construction boom that started in Europe at the end of 2017 and lasts until now, has partially offset the price differences. At the same time, as a consequence of the building boom, which hit CEE, the companies have a lot of work and are increasing their profits.
Lucie Kybalová, author of the 2019 Construction Cost Analysis whitepaper, comments: ‘This was also significantly reflected in the overall increase of construction costs, lack of interests in bidding and prolongated delivery times of some materials – mainly mineral wool and precast concrete. But we can see some indications, that contractors are more willing to offer now in 2019 and that they do not have such contracted work as they had a year ago. The price differences in Central & Eastern Europe countries are relatively minimal today and there are many similarities in terms of costs. If compared with North-West Europe region, the prices in CEE are still more than 20% lower. Some correction of prices can come in the near future’.
Bilfinger Tebodin procurement experts shared recommendations on how to avoid negative surprise during the investment preparation. The key issues in this regard are the following:
- choosing the most suitable project strategy
- timely project planning including cost estimates at the initial stages of the project
- active cost management from the early design stage
- looking for alternatives: value engineering
- ensuring sufficient time for tender of a general contractor / multiple contractors
- preparation of procurement and contracting strategy for the construction stage of the project
Read about our previous events on Procurement, project- and construction management and Project strategies EPC, EPCM, PMC. To participate in the upcoming seminars on the topics Industry 4.0 & BIM, Green technology, Lean management or Innovations in construction, please send an e-mail to email@example.com
Our next scheduled seminar will be held in Ostrava on October, 17 at 2 p.m. CET
For registration and further information, please contact:
Mobile +420 724 518 622