Budimex among the highest-rated subcontractors in the building and construction industry
Budimex is one of the highest-rated subcontractors in the building and construction industry in this country. A recent study confirms it, carried out by the ASM market research and analysis centre in over 300 companies.
Budimex was identified as the best general contractor offering the most favourable financial conditions and timely payments. The company is also recommended as the best partner in joint projects. In view of all the cooperation criteria, such as safety or recommendations for other partners, Budimex has become one of the two highest-rated construction companies.
“Professionals in the building and construction industry have once again recognised our experience. We work with many companies to complete investments, and we have been doing our utmost for many years to make our relationships with subcontractors as successful as possible. We are pleased that the market notices that and recognises us as a reliable partner,” commented Dariusz Blocher, CEO of Budimex.
To ensure the safety of the subcontractors’ interests and continuity of construction works, Budimex offers to split payments into instalments, making sure all deadlines are met. Moreover, it follows a transparent financial policy as a general contractor.
“The relationship with general contractors is particularly important, not only from the investor’s but also from the subcontractor's perspective. A reliable general contractor guarantees the highest standards of teamwork. This is about the aspects which are crucial for all companies, such as financial safety, low insolvency risk, stability, opportunities for long-term working, and transparency of business behaviours. Undoubtedly, work safety requirements are particularly important. General contractors follow reliable industry standards and guarantee the highest level of safety for all employees, including the subcontractors’ personnel,” explains Jan Styliński, Chair of the Polish Association of Construction Employers.
General contractors who carry out complicated projects often deal with low margins. The higher the scale of a contract, the more issues they face with subcontractors’ profitability, so there is a greater risk of potential loss. Recently the situation of the market giants has improved. Based on the data obtained from Statistics Poland, their profitability index increased from 1.2% in 2018 to 2.4% at the beginning of 2020. These indexes are significantly higher for small and medium-sized enterprises. The profitability of medium-sized enterprises increased from 5.1% to 7.3%, and from 8.8% to 10.6%, in the case of small enterprises.
Budimex SA, with 2.2% at the end of H1, is an example of a large company which saw a higher gross profit profitability index at the beginning of 2020 in the construction area (compared to Q2 2019). The company carries out construction contracts with the help of many subcontractors and suppliers, and the quality of their relationships has been confirmed by the latest report delivered by the ASM market research and analysis centre.
Budimex is one of the biggest construction companies in Poland. It is carrying out construction works in over 200 contracts and works with roughly 15,000 subcontractors and suppliers. The company usually works with local companies in locations where the construction projects are carried out. This is profitable for both the investment process and local development.