Book

Description

This publication is a compilation of multiple papers on the topic of public procurement in the construction industry, specifically within the European Union and Czechia. It goes over the basics of public procurement and construction, implementation of risk management and the fight against it via management of ancillary costs, the advantages and disadvantages of small and medium-scale construction companies and the issues they face. The publication also includes an analysis of the system, pointing out the flaws of the public procurement, and a comparison with public procurement in other EU countries. Last paper goes over the development of the construction industry in recent years in the context of COVID-19 crisis and the current war and inflation. The main focus of the publication is to explain the basics of the system to the reader, while also focusing on some of the lesser known issues of the system, such as illegal activity and corruption, which has a large impact on every aspect of it. Small and medium enterprises within the sector are often times at a disadvantage, because the public procurement system is not fair and favors large enterprises. The reason for this is the lack of resources of small and medium size enterprises, which leads to inability to create enough risk reserves or appropriately manage risks. This is made worse by the rise of favoritism, which is especially bad in Czechia, leading to the competition being unfairly manipulated. The projects are then awarded to enterprises which the awarding authority has a personal relationship with.