There is a fine line between defense and obstruction in construction, says Petr Michal
04 \ 11 \ 2025
Lengthy permitting processes are a perennial topic in all debates about the Czech Republic's development. However, nothing fundamental is changing, which not only makes construction more expensive but also distorts the market. Sometimes companies themselves contribute to this by abusing appeals, points out Petr Michal, chairman of the Prague Chamber of Commerce.
Construction processes in Czechia are so long that some companies do not even bother to apply for them. This can be seen, for example, in the construction of apartment buildings, which are only built by large companies; we have lost the layer of small and medium-sized developers. Does this apply to contracts in general?
It is true that there is an increasingly strong and at the same time increasingly narrow layer of large successful corporations, alongside which a fragmented microcosm operates. A successful society can be recognized, among other things, by the fact that it has a middle class of entrepreneurs. In Czechia, we have desperately few of them. A few stronger ones will survive the chaos, but the smaller, less capable ones will not make it.
At the Prague 2050+ conference, organized by the Prague Chamber of Commerce and e15 as its media partner, you mentioned that companies abuse the possibility of appeal in public procurement. Is this really such a big problem?
To a certain extent, it is related to the phenomenon known as social responsibility. However, this is not just about sorting waste or employers treating their employees well. It also includes entrepreneurs not devastating the market. There is a very fine line between someone using remedies to defend themselves and obstructionism. The fact that this problem exists can be seen, for example, in the contract for the D metro line. In this case, it seems that the partial interests of market participants prevailed over the public interest. In two or three years, the problems surrounding the D line will hopefully be resolved, but the delays and damage have already been done.
The entire interview can be found on the e15 website.
