In Hungary, there is no concept of general construction or specialized construction like Korea. Also, there are no separate license conditions for this, and since business type code can be added/deleted for convenience, they are not deliberately classified by detailed.

Precisely saying, there are no classifications and restrictions according to contract volume and type of business, but there are only specialized fields such as Korea according to each company’s business policy.

There are many global companies which aims for comprehensive construction field with headquarter located in Western Europe and Hungarian large-scaled construction companies here but there are few numbers. If you count such a company who has experience worked for Korean company, reference to build industrial plant or factory and project experience as general contractor, it must be limited.  

Recently, as Korean companies penetrated into European market, there are many construction companies which are interested in this opportunity, but it is necessary to carefully check whether they understand the Korean business culture, whether they have a suitable operating system, or whether they are proceeding with simple subcontract concept.

Local practice on construction field

Some differences on construction practice with Korean way are following below

  • Structural frame work à usually precast concrete
  • Concrete slab à Half slab either SFRC
  • Roof materials à Plastic membrane Sheet
  • HVAC à Hot Water Boiler, Unit heater, Air cooled type, AHU, System air conditioner

Partnering with construction

Selection of a construction company is most important factor along with design completion. From the client’s point of view, the concept of ‘to manage’, not ‘to delegate’ for the construction, should be approached.

Depending on the construction policy of the client, It may vary on construction period and cost per which company participates in the construction

No matter how accurately the scope is defined, the situation is likely to change due to the nature of the construction work, and in this case, the hegemony on contractual relationship between “client” and “contractor” reverses mostly

Therefore, the selection of a construction company shall take into account the company’s reputation, shop drawing ability, workload, documentation quality, and communication skill to understand each other’s culture rather than a simple interpretation, not only final cost for qualification prior to contracting.

For this sake, prequalification for filtered contractor must be performed in advance, RFP (Request For Proposal) must be prepared precisely, and the following details must be described one by one and used as a clarification point during contract and construction phase.

  • ITB (Instruction to Bidder)
  • Scope or Works
  • BOQ (Bill of Quantities)
  • Client’s requirements
  • Level 3 Project master schedule
  • Attentive consideration
  • Drawings
  • Technical specification
  • The draft of contract

The above narratives are “gate” to prevent unnecessary misunderstandings between the client and the construction company after bidding and contracting. Accordingly, it is the minimum information that can prevent disputes that may arise in the future construction phase.