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Non-existent competition breaks down barriers, developers can get up to 38% on a contract even without a cartel agreement

Developers in the doldrums, so builders are scrambling to repair sidewalks or nurseries. And municipalities are saving tens of millions

A total of 14 construction companies have expressed interest in the contract for the extension of the kindergarten building in Valašské Klobouky this year. “Never in the history of our municipality have so many companies entered the competition,” says councillor and former mayor of the town of five thousand Eliška Olšáková (STAN). Although the town had prepared CZK 56 million for the project, thanks to a large competition it will end up paying the winning company CZK 20 million less.

Source https://hn.cz/developeri-v-utlumu-stavbari-se-tak-pretahuji-o-opravy-chodniku-nebo-skolek-a-obce-setri-desitky-milionu
 
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