January 26th, 2009

Building industry trade groups create national body; air for industry consolidation

Hungary’s seven regional building industry associations established a national council in Budapest on Friday.

Pal Bacsarszky, who was appointed chairman of the council, said one of the aims of the body is to see Hungary’s 90,000 building industry businesses consolidated in 10,000-15,000 viable companies that can employ staff and pay them well, instead of using cheap contracted labour. Today’s economic situation calls for cooperation: it will be easier to survive by joining together, he added.

The regional building industry associations will be in continual contact with the council, and the council will maintain communication with the state. An important task for the council will be the taking steps against unrealistically low prices in the building sector. The Public Procurement Act was recently amended to exclude bidders whose offers are found to be suspiciously low.

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