Construction orders - 3. quarter of 2006

 
The total value of new domestic construction orders reached CZK 81.1 billion in Q3 2006, which was up by 3.4% year-on-year. At the end of Q3 2006, construction enterprises recorded 20.5 thousand domestic orders in the total value of CZK 211.9 billion.
New construction orders

In Q3 2006 construction enterprises obtained 24 835 new construction orders in the total value of CZK 81.1 billion, which was up by 3.4% year-on-year.
The value of new orders by type of construction was:

• up by 45.8% (contribution 5.3 percentage points) for non-residential buildings designed for production;
• up by 6.4% (contribution 2.3 p.p.) for civil engineering works;
• down by 29.9% (contribution -1.0 p.p.) for water management works;
• down by 7.7% (contribution -1.9 p.p.) for non-residential buildings not designed for production;
• down by 0.8% (contribution -0.1 p.p.) for residential buildings.

 
The increase in the value of new construction orders for non-residential buildings designed for production (+45.8%) was mainly due to new orders for financially demanding construction of buildings for industrial production, halls and service stations, which is related to a 51.4% growth (year-on-year) of the approximate value of building permits granted for non-residential buildings in Q3 2006.
On the other hand, the lower year-on-year value of new construction orders for water management works is attributable to the fact that most of the operational flood-control works have already been constructed and the next large projects are in preparation.The average value of a new domestic construction order reached CZK 3.3 million (CZK 4.7 million per public order and CZK 2.4 million per private order), which was by 20.1% higher than in Q3 2005. Out of the total value of new orders, public orders made up CZK 43.4 billion (53.5%) and private orders CZK 37.7 billion (46.5%). By number of construction orders, private orders prevailed and accounted for 62.9% of the total of 24 835 new orders.
    
Orders cancelled

In Q3 2006, 219 construction orders worth CZK 3.0 billion were cancelled.
 
Construction order value

There is a direct relation between the value of construction order and the size of the construction enterprise. Large construction orders are predominantly obtained by construction enterprises that are able to carry out the entire construction work at required technological level.
 
Domestic construction orders: by period of completion
           
Out of the total number of 20.5 thousand construction orders, 94.6% will be completed within a year, which is almost the same figure as in Q3 2005. This indicator is above 90% in the long term. In total, 78.4% of all orders registered at the end of Q3 2006 will be completed within 6 months.

From the total value of construction orders (CZK 211.9 billion), 75.3% will be completed within a year, which is by 3.0 percentage points more than in Q3 2005. 48.0% of the total value of orders will be completed within 6 months.

The value of construction orders recorded at 30 September 2006 amounting to CZK 211.9 billion represented a nine-and-a-half-months’ “reserve” of work for construction enterprises.

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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 November 2006
End of data processing: 20 November 2006
Related publications: /1-ep-8
8203-06 Construction Orders Statistics
The data will be revised when data for Q4 2006 are processed