Majority of construction companies in Romania postponing works: report-Xinhua

Majority of construction companies in Romania postponing works: report

Source: Xinhua

Editor: huaxia

2022-09-20 00:53:45

BUCHAREST, Sept. 19 (Xinhua) -- The majority of the largest construction companies in Romania say they are being forced to postpone works due to the rising price of materials, according to an industry report released on Monday.

About 73.6 percent of Romania's top 100 construction companies blame price increases for delays in project execution, said the report.

The report published by IBC Focus, a marketing company specialized in the construction market, showed that most builders are responding to the trend of price volatility by launching pre-orders.

According to Andrei Spataru, CEO of IBC Focus, price growth is also being passed on to end customers, and some construction companies are introducing contract escalation clauses that allow builders to renegotiate prices depending on the market situation.

Other challenges faced by major construction companies in Romania include a shortage of qualified personnel in the field and soaring energy prices.

"However, a positive effect of the price increase can be seen in the behavior of companies and the search for innovative solutions, such as design optimization and design quality in order to save materials, reduce losses and waste, plus the introduction of advanced technologies," said the report.

According to IBC Focus, 74 percent of the largest construction companies are currently focusing on public projects such as infrastructure works, social construction and public utilities, expecting workload increases in these areas over the next year.

In the private sector, industrial construction is the most promising field in the upcoming period, followed by retail and residential investments. Conversely, the least attractive area of the construction industry is the office sector and commercial buildings, according to the report.

Meanwhile, according to data from the National Institute of Statistics also published on Monday, the total volume of construction works increased by 2.7 percent from January to July this year, compared to the same period last year. Growth was highlighted in maintenance and current repairs (10.2 percent) and in new construction works (1 percent).