Table of contents Here’s what you can find in this edition
2013 – What does it take to be in the top? |6| Top 10 contractors in construction |24| The first 10 contractors hold almost half of the income of the wealthiest 100 |25| Why are Romanian construction contractors more profitable? |25| ”2013, another lost year!?... Until when? And who will be held responsible?” |26| What should we do in 2013? |26| The wallets hold 2.5% more, but is the salary, bonus and commission enough? |27| 1 of 2 employees do not benefit from training |28| Construction, one of the anchors of Romania’s economy |29| Achievements in construction on a low gear |30| More companies, less income |31| In Romania, every hour a new construction company emerges |33| “Those who did have will have more and those who didn`t will have less” |34| A third of the market lies in the hands of the most powerful 100 contractors |34| Why is there an economic paradox? Businesses grow and profits shrink |35| Top of the most profitable contracting companies |36| Top 10 new-entry companies |38| Top 10 highest rising companies |40| Top 10 companies dropping out off the top |41| The countries strongest 10 contractors, only half as profitable as the top`s |42| The 10 largest employers in the market |68| Half of the contractor`s revenues go into the Capital`s accounts. |73| The SRL* - the kind of company attributed to success |74| Approximately 1 in 20 contractors has its website „under construction” |73| Are construction companies investing in marketing? |75| In average, 1 of 5 construction sites are managed by a top contractor |77| Public projects - fewer and more valuable |77| Public funding – the salvation from the flood. Isn’t the boat to small? |78| Half of the top contractors expect growth in 2013 |80| Is 2014, under the question mark? |81| Is 2013 a better year for companies preferring privet contracts? |82| The opinions of the largest contractors are different from the ones of the collaborators |82| Do foreigners know something that we don’t? |83| Why do large contractors enter into insolvency? |84| We were offered 5, we only took 1 |88| * a designation equivalent to limited liability company Thank you for choosing an IBC Focus product for your business. This edition will offer valuable information for a more detailed perspective of the contractor segment in construction. The following pages will offer you unique analyses at national level, necessary for you to make decisions so that you will be able to predict the direction towards which the local construction markets will evolve in this economic crisis context. This analysis targets only he economic and financial performances of the companies in question and will not make any references to the quality of the undermined projects or to the creativity of the mentioned companies.
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Methodology or how this analysis was designed
At the base of this study lies an intense research and data collection activity. For conducting this study, a team of IBC Focus researchers contacted by phone, e-mail or fax over 200 companies. Out of these 200 companies, 100 were selected to be the Top 100 General Contractors in Construction. Please find below the selection criteria used by IBC Focus and the working protocol implemented for this study. Furthermore, the research department of IBC Focus worked daily in the last 12 months in order to gather the necessary information concerning the 100 selected companies’ active construction projects and all the active contractors. The result of this information gathering is the largest database of construction sites – www.raportuldeinvestitii.ro. After the interviews with the selected companies in the first phase of the selection process was done, a thorough research process took place, which involved gathering, analysis, interpretation and correlation of public and statistical data owned by IBC Focus – market leader in monitoring and studying the construction market in Romania.
How did we select the companies?
In order to establish the ranking that concludes this study, the first contacted companies were the ones presented in the last edition of the Top 100 General Contractors in Construction, followed by the first 200 contracting companies, registered under the NACE code 4120 (construction works of residential and nonresidential buildings), in order of their turnover in 2012 and the contractors of the biggest investment projects according to www.raportuldeinvestitii.ro, the largest construction site data base in Romania. This way, the activities of these companies and contractors on the market and their presence in construction projects in Romania could be verified. Because there are companies that reported incomes from other activities than just those of contracting and subcontracting, such as sales of building materials, real estate development (promotion), renting machineries and other related activities, all companies selected in the first phase were invited to an interview to confirm/refute the collected data on these companies and to answer various questions regarding the market`s evolution in 2013, the projects that they are currently developing and other related questions. In conclusion, 4 distinct and independent sources were used: The Ministry of Finance, National Trade Register Office, the Investment Report* (the largest construction site and construction projects data base in Romania) and the answers received on the questioners filled out by the interviewed companies. All of the almost 300 companies were asked to participate in our interviews. Unfortunately some of the answers were incomplete or missing which is why the data concerning the companies that did not answer were verified through public sources.
How did we rank the first 100 contractors?
IBC Focus took 3 main criteria into consideration when this ranking was developed: a. Achieved income strictly from contracting and/or subcontracting projects developed in 2012 by companies registered with the NACE code 4120. This was calculated as a declared or estimated percentage of the turnover in 2012. The statistical method was applied in the case of the companies that did not submit any information regarding the percentage out of their turnover obtained from contracting and/or subcontracting projects: we used either the percentage equivalent to the average of the best placed companies or estimates according to the values reported in previous years. b. Number of active construction projects (in progress, started or completed during 2013) and their value, which are mentioned in the largest construction site and construction projects data base in Romania – the Investment Report; c. The company’s recorded financial data in 2012 publicly displayed until August 1, 2013.
The IBC Focus research team contacted over 200 companies which met the three criteria mentioned above, then designed a filter depending on the received responses to the applied questionnaire either by phone, fax or electronically. Below you can see the types of companies contacted that were not included in this Top: - companies that are registered under the NACE code 4120 but carry out other activities than construction works of residential and nonresidential buildings; - companies that are part of a larger group of companies which is already represented in the top 100 general contractors through another company. The top ranked company, according to the criteria set by IBC Focus, was included. These companies were included in the analysis but did not receive a position in the top; - companies that reported turnover and activity in 2011 (some partially in 2012 to), but at the time when the data was collected were in a insolvency, bankruptcy, liquidation, delisting, merger or division process or state. These companies were included in the analysis but did not receive a position in the top; - companies that did not have any construction project in progress during 2013 in Romania or companies about which the IBC Focus team did not get information concerning their projects. In order to complete this top companies were treated as separate legal entities, just as they were registered at the Ministry of Finance / NTRO. The used names and figures of these companies were the ones published by them on August 1, 2013. IBC Focus is not responsible for any changes that may occur after the publication of these figures. The turnover of the groups of companies presented in this ranking may be influenced by intragroup transfers. All these criteria were subjected to the “expert`s method”. The received information was confronted with the experience of experts in the field and the over 8 years of experience that IBC Focus has in monitoring, analyzing and studying the construction market. In order to conduct this study properly, IBC Focus tried to utilize the most relevant, useful in an economic context and well defined criteria. Note however, that the result after applying the criteria can be a subjective one. Therefore, IBC Focus disclaims any implied or expressly stated liability, without ensuring that the entire content will be error free or interpreted differently. not fail or different interpretations. Use of this study or any analysis thereof is at your own risk, IBC Focus is not responsible for any damage that may occur from the use of this study or parts of it.
* Raportul de Investitii - www.raportuldeinvestitii.ro
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