EUR 3.3 billion worth of construction deals lost in Serbia
A new law on planning and construction needs to be adopted urgently to keep the construction sector from wasting yet another year, says the Business Support Network (BSN), whose research shows that Serbia has lost EUR 3.3 billion worth of deals in the construction industry.
Due to delayed reforms in planning and construction, EUR 3.3 billion worth of deals and 65,000 construction industry jobs were lost in the period between 2012 and 2014, the BSN research shows.
The Ministry of Construction, Transport and Infrastructure needs to propose a new law on construction and planning, while certification processes for construction materials and equipment in Serbia must be aligned to those in EU states, the BSN said.
The organisation assessed the damage caused to Serbian construction and building materials companies over the past three years by the delay in the adoption of a new law on planning and construction.
The research is based on figures from the Serbian statistical office, the Business Registers Agency, the Real Estate Cadastre and a survey of 726 managers of construction companies operating in Serbia.
Several opinion poll agencies, construction consultants and civil engineers working at private construction firms took part in the research.
The research focused on the extent to which complicated, lengthy procedures thwart construction deals.
The 726 companies that took part in the survey represent 10.09 percent of the total construction companies registered in Serbia. When multiplied to the level of the entire construction and building materials sector, the results show that the total damage in the period between 2012 and 2014 amounted to EUR 3.365 billion.