Construction orders - 2. quarter of 2006

The total value of new construction orders in the Czech Republic reached CZK 69.1 billion in Q2 2006. This figure was up by 11.5% year-on-year. At the end of Q2 2006, construction enterprises had 20.2 thousand domestic orders contracted in the total amount of CZK 214.6 billion.
New construction orders

In Q2 2006 construction enterprises concluded 22 166 new construction orders in the total value of CZK 69.1 billion, which was up by 11.5% year-on-year. There was a change in the structure due to an increase of new civil engineering orders and a decrease of housing construction orders.

The value of new orders by type of construction was:

• up by 38.8% (contribution 12.4 percentage points) for civil engineering works;
• up by 27.5% (contribution 5.8 p.p.) for non-residential buildings not designed for production;
• up by 21.2% (contribution 0.2 p.p.) for water management works;
• down by 24.7% (contribution -5.6 p.p.) for residential buildings.

 
The increase in the value of new civil engineering orders by 38.8% was affected by contracts concluded for financially demanding constructions, in particular road and highway infrastructure, and by the low comparable basis of Q2 2005.
On the other hand, the decrease in the value of new residential building orders was influenced by the high comparable basis of Q2 2005 when contracts for large housing complexes (e.g. Slunečný vršek or Central Park in Prague) were concluded.
The average value of a new construction order in the Czech Republic reached CZK 3.1 million (CZK 4.7 million per public order and CZK 2.2 million per private order), which was by 25.8% higher than in Q2 2005.
Out of the total value of new orders, public orders made up CZK 39.2 billion (56.7%) and private orders CZK 29.9 billion (43.3%). In terms of numbers of orders, private orders prevailed and accounted for 62.5% of the total of 22 166 new orders.
    
Orders cancelled

In Q2 2006, 124 orders worth CZK 0.5 billion were cancelled.
 
The value of construction order

There is a direct relation between the value of construction order and the size of construction enterprise. Big construction orders are given mainly to large construction enterprises that are able to carry out entire construction at the required technological level.

 
Progress schedule for completion of construction orders in the Czech Republic
           
Out of the total number of 20.2 thousand orders concluded, 93.8% will be completed within a year, which is a lower percentage than in Q2 2005. This indicator is above 90% in the long term. In total 81.1% of all orders concluded as at the end of Q2 2006 will be completed within 6 months.

From the total value of construction orders (CZK 214.6 billion), 76.3% will be completed within a year, which is by 2.5 percentage points more than in Q2 2005. Over a half (51.7%) of the total value of orders concluded will be completed within 6 months.

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Note
Contact: Vladimír Zikmund, phone (+420) 274 054 252, e-mail: vladimir.zikmund@csu.gov.cz
Data source: CZSO direct survey in enterprises with 20+ employees, classified to CZ-NACE 451 and 452
End of data collection: 10 August 2006
End of data processing: 22 August 2006
Related publications: /1-ep-8
8203-06 Construction Orders Statistics
The data will be revised when data for Q4 2006 are processed.