Upturn in value of construction work contracts in Russia

2010-05-31

Despite the fact that the monetary value of construction work orders obtained by construction companies in Russia between January and April 2010 was significantly lower than that of last year, an upward trend has been observed since January.

Between January and April 2010 large and medium-sized construction companies in Russia signed construction work contracts and other construction orders with clients for the future delivery of services worth RUB 1,015.8bn (€26.9bn) in total, which is nominally 22.8% less than those of the equivalent period of last year.



However, the contracts signed in April alone were worth only 12.9% less that those of April 2009. Despite the fact that the figure is negative this shows a significant improvement in comparison with previous months, particularly January 2010, when the contracts signed were worth almost one-third less than those of the equivalent period a year before. This was the most substantial reduction in the value of contracts observed since the onset of the economic crisis. The upturn started in February and has continued, which augurs well for the construction industry in Russia in the next few months.



In the first four months of 2010, the backlog of orders recorded was significantly lower than that of the corresponding period of last year and remained at the 2008 level. During April 2010, construction companies in Russia were ensured work for another 2.4 months, whereas last year the figure was slightly higher – 2.7 months.


Note: The monetary value of construction work contracts concluded should not be confused with the value of construction output, as the former refers to construction work to be carried out in the near future and the latter to work already completed.

Katarzyna Koprowska
Business Editor
PMR Publications