UREC Construction Day: «Is there a contractor market in Ukraine?»

On September 11th at 14:00 in the conference hall of the «President Hotel» Ukrainian Real Estate Club will hold a conference UREC Construction Day 2012 on the topic «Is there a contractor market in Ukraine?». The main themes of the event will be the market for general contracting services, the opportunities to enter the market of foreign contractors, models of the relationship between the general contractor, developer and subcontractors, as well as the cost of services of general contracting and prospects of the industry in Ukraine.

During the discussion panel will speak representatives from Midland Development, T.M.M., Altis-Holding, 21 Century, Ukrbudcontract, Solid Group etc.

All participants of the construction process - investors, developers, general contractors, designers and subcontractors to date have accumulated an impressive number of various unsolved questions.

Among the problems that are more likely arise between the parties to the construction process, the specialists call the failure of terms of the general contractors and the general designers, changing the purpose of the object being implemented by the clients, imposition to general contractor (sometimes at the level of the contract) of the various sub-contractors, the lack of proper control over the progress of construction work, the excess of the originally approved budget, problems with external coherence and different specifications, failures with financing, low-level design, etc.

As noted by the Managing Partner of «Ukrbudcontract» Sergei Fedorik, «the basic trend of 2009-2012 was the creation of strong customer service, where invited the best shots of general contracting companies. This approach makes it, in many respects, an illusory sense of security and control over the situation for the client and for the contractor threatened emasculation, in fact, functions of construction management and note of a contractor to the functional construction of a generalist. When customer service is composed of former members of general contractor companies, the psychological profile of their work will inevitably be reduced to informal shuffling over part of the functions of general contractor. This leads to a blurring of responsibility, lack of coordination, miscommunication with suppliers etc., and therefore, ultimately, will not benefit either the customer or the general contractor».

In addition, statistics shows that construction was the only sector of the economy of Ukraine, which in 2011 showed a decline. 58.5% of construction companies last year received a total profit of 1 billion 899 million UAH, which, however, «extinguish» by the total loss of 2 billion 747 million UAH by the remaining 41.8% of the companies from construction industry.

As we can see it seems that there were accumulated a lot of questions. And that means it's time to sit down and discuss the existing problems, to initiate an open dialogue between all stakeholders of the construction process. This possibility plans to provide Ukrainian Real Estate Club during the conference UREC Construction Day.