| Work Detail |
Although in the Czech Republic the competition of tenderers for public contracts decreases, Ústí nad Labem has come second in comparison with the Czech cities.
This results from EconLabs analysis that competition for public procurement has fallen by a third. The downward pressure on the rise in the price of work also corresponds to the collapse.
"Only in construction this year, the state will lose CZK 17 billion. The smallest damage is caused by a collapse in cities that make orders smarter: Orlová, Ústí nad Labem or Karlovy Vary write orders in a suitable time, in a suitable form and mainly prepare them well, " said Jirí Skuhrovec, co-author of the study.
"Its a good news. It proves that, despite the various attacks and challenges to the work of the citys management and the people involved in public procurement, the city is doing well in this area. It is the result of a three-year effort to make the system more efficient and have made significant savings, " said Mayor Deputy Mayor Jiri Madar. In 2013-2015, the city was rated 21st in this respect.
According to the study, 2018 is the worst in terms of competition over the last fifteen years. In addition to the construction work market, there has also been a significant fall in forestry or legal and advisory services. The cause is paradoxically an economic boom - companies are not interested in reporting state orders when everywhere work is enough.
How can the authorities deal with the problem? The first step is not to make unnecessary mistakes, according to the study. "Such a construction contract launched in October, in a tight procedure and with an electronic receipt of offers, is a guaranteed competitors repellent. We have calculated that these three wrong steps together will cause an increase of 20% on average through weaker competition, " explained Jirí Skuhrovec.
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