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Not so easy for general contractors

Rafał Ostrowski 07 December 2018

Rafał Ostrowski


+48 22 356 25 11

Rafał Ostrowski has over 17 years’ experience as a journalist. Before joining ‘Eurobuild CEE’ five years ago, he wrote for Wydawnictwo Murator and Shopping Centre Magazine, as well as for retailnet.pl. He has also written for many newspapers and magazines as a freelancer and prepared photo-reportages. Rafał graduated from the University of Warsaw in philosophy. He also completed postgraduate studies in text editing. For ‘Eurobuild CEE’ he covers most real estate sectors, including logistics, construction, office, residential and retail. He is also in charge of the film direction for Eurobuild TV.

Not so easy for general contractors
24th Annual Property Market Convention organised by Eurobuild CEE

POLAND "Self-respecting construction companies price their services according to current rates and expect partnership from investors,” said Łukasz Kozerski, the development manager at CFE Polska, during a panel discussion on the problems faced by the Polish construction sector at the 24th Annual Property Market Convention organised by Eurobuild CEE.

He also pointed out that the caution of general contractors is making life for developers more difficult. Having had their fingers burnt on previous contracts, general contractors will often refuse to enter into a new investment if they see even a shadow of a risk.

“We signed several contracts a year and a half ago, when material prices started rising sharply and also in the project estimates, discrepancies appeared between purchase prices and what was budgeted. However, we managed to sort out a few projects by signing a number of annexes. We did not earn as much as we intended but we came out unscathed,” said Łukasz Kozerski. Mateusz Witczyński, the communication manager at Astaldi, stated that sometimes it is not worthwhile for a company to remain in a toxic and unprofitable contract and then, despite the damage done to reputations and the financial losses, you have to take the difficult decision to leave a building site. Astaldi had already walked away from work for PKP [Polish State Railways] on two railway lines between Rawicz and Leszno and between Dęblin and Lublin. “The simplest economic law that prices rise when demand increases was ignored. It didn’t seem to matter to anyone whether the tenders were all announced together or one by one. Nobody thought it through, since the only thing that was important is that we build. It seems to me that this is the problem. We do not realise how much power the state really has and that even gigantic companies are really small on a market that is controlled by the state,” said Mateusz Witczyński. Paweł Sajewicz, an analyst from Euler Hermes, gave a presentation of the latest insolvency figures for construction companies. “In the first three months of this year we had 138 insolvency cases in the construction industry. Last year we had 132 cases over the same period. We are still operating in the problematic market,” he claimed.

Paweł Sajewicz, analyst Euler Hermes

Wioletta Fabrycka, the client relations manager at RD Bud

Mateusz Witczyński, the communication manager at Astaldi

Łukasz Kozerski, the development manager at CFE Polska

From the left: Mateusz Witczyński (Astaldi), Paweł Sajewicz (Euler Hermes), Rafał Ostrowski (Eurobuild CEE, moderator)

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