Public contracts in holding companies operating in the construction industry – a case of the Czech Republic
Abstract
This paper is produced as an exploratory study with the aim of carrying out a taxonomy of construction companies operating in the Czech Republic, taking into account the type and number of concluded public procurement contracts. In processing the multidimensional matrix describing the companies, a cluster analysis was used to identify the dependence between the set of variables. Results of the analysis suggest that the prevailing types of public procurement procedures include negotiated procedure without prior publications, open procedure and simplified below-threshold procedure, while from the point of view of the contracted value, the open procedure is of the highest importance. As for the cluster analysis conducted for the types of public procurement analysis, one can conclude that there is a relation between the number of public contracts concluded and the scope of the types. On the other hand, the extension of the conducted cluster analysis did not provide any conclusive evidence regarding the relationship between the types of public procurement contracts and the types of holding structures. Such a study has not been realised in the Czech Republic yet. Thus, the results of this study provide a background for research in the area of public procurement in the Czech Republic. Some potential research questions have been stated in the discussion part of the paper.
Keyword : construction industry, cluster analysis, Czech Republic, holding structure, public procurement
How to Cite
Brychta, K. (2021). Public contracts in holding companies operating in the construction industry – a case of the Czech Republic. Business: Theory and Practice, 22(2), 267-276. https://doi.org/10.3846/btp.2021.13270
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Sičáková-Beblavá, E., Klátik, P., & Beblavý, M. (2013). Ekonomické efekty elektronických aukcií na Slovensku. Ekonomický Časopis, 61(10), 1067–1078. https://www.sav.sk/journals/uploads/0621142810%2013%20Sicakova-Beblava%20a%20kol.pdf
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Vyklický, M., Man, P., Heidu, R. R., & Jurčík, R. (2016). Qualitication requirements for foreign suppliers in public procurement – evidence from the Czech Republic. DANUBE: Law and Economics Review, 7(1), 19–39. https://doi.org/10.1515/danb-2016-0002
Wong, J. K. W., Chan, J. K. S., & Wadu, M. J. (2016). Facilitating effective green procurement in construction projects: An empirical study of the enablers. Journal of Cleaner Production, 135(01 November 2016), 859–871. https://doi.org/10.1016/j.jclepro.2016.07.001
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Yu, A. T. W., Yevu, S. K., & Nani, G. (2020). Towards an integration framework for promoting electronic procurement and sustainable procurement in the construction industry: A systematic literature review. Journal of Cleaner Production, 250(20 March 2020), 1–18. https://doi.org/10.1016/j.jclepro.2019.119493
Zákony pro lidi. (2018). Zákon č. 134/2016 Sb., o veřejných zakázkách, ve znění pozdějších předpisů. [Act No. 134/2016 Coll., on Public Procurement, as amended]. https://www.zakonyprolidi.cz/cs/2016-134
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Bureau van Dijk. (2018). Amadeus Database. Update number 292. Sotware version 16.06. https://www.vutbr.cz/uk/eiz/databaze/amadeus
Coviello, D., & Mariniello, M. (2014). Publicity requirements in public procurement: Evidence from a regression discontinuity design. Journal of Public Economics, 109(January 2014), 76–100. https://doi.org/10.1016/j.jpubeco.2013.10.008
Czech Statistical Office. (2019). Registr ekonomických subjektů. https://apl.czso.cz/irsw/
ČNB. (2018). Central bank exchange rate fixing. Valid for 31 Dec 2015 # 251. http://www.cnb.cz/en/financial_markets/foreign_exchange_market/exchange_rate_fixing/daily.jsp
Di Mauro, C., Ancarani, A., & Hartley, T. (2020). Unravelling SMEs’ participation and success in public procurement. Journal of Public Procurement, 20(06 June 2020), 377–401. https://doi.org/10.1108/JOPP-03-2018-0013
Dufek, L. (2013). Measuring private transaction cost of public procurement: case of the Czech Republic. Acta Universitatis Agruculturae et Silviculturae Mendelianae Brunensis, LXI(2), 317–325. https://doi.org/10.11118/actaun201361020317
Eur-Lex. (2018). Council Directive 2011/96/EU of 30 November 2011 on the common system of taxation applicable in the case of parent companies and subsidiaries of different Member State as amended. https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32011L0096&from=CS
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European Commission. (2018b). Public procurement. https://ec.europa.eu/growth/single-market/public-procurement_en
Hendl, J. (2012a). Kvalitativní výzkum: základní teorie, metody a aplikace. Portál.
Hendl, J. (2012b). Přehled statistických metod: analýza a meta-analýza dat. Portál.
Kalová, D., & Brychta, K. (2018). Atributy developera a developerské činnosti ve stavebnictví – případ České republiky. ACTA STING, 2018(3), 23–39. https://www.sting.cz/acta/3-2018/acta3_2018_web.pdf
Kotane, I. (2015, 25–27 March). Use of financial and nonfinancial indicators evaluations of company’s performance. In CBU International Conference on Innovation, Technology Transfer and Education. Praha. https://doi.org/10.12955/cbup.v3.605
Krivka, A., & Stonkutė, E. (2015). Complex analysis of financial state and performance of constructions enterprises. Business, Management and Education, 13(2), 220–233. https://doi.org/10.3846/bme.2015.300
Kučera, L. (2015). Odliv dividend zesílil. Stastika & My, 5(6), 18. https://www.statistikaamy.cz/2015/06/odliv-dividend-zesilil/
Locatelli, G., Mariani, G., Sainati, T., & Greco, M. (2017). Corruption in public projects and megaprojects: There is an elephant in the room! International Jounal of Project Management, 35(3), 252–268. https://doi.org/10.1016/j.ijproman.2016.09.010
Ministerstvo průmyslu a obchodu České republiky. (2018). Rada vlády pro stavebnictví ČR. https://www.mpo.cz/cz/stavebnict-vi-a-suroviny/rada-vlady-pro-stavebnictvi-cr/default.htm
Ministry of Justice. (2019). Veřejný rejstřík a sbírka listin. https://or.justice.cz/ias/ui/rejstrik
Ministry of Regional Development of the Czech Republic. (2019). Information System of Public Contracts. http://www.isvz.cz/ISVZ/Podpora/ISVZ_open_data_vz.aspx
Mohamad, H. H., Ibrahim, A. H., & Massoud, H. H. (2014). Modelling of financial performance construction companies using neutral network via genetic algorithm. Canadian Journal of Civil Engineering, 41(11), 945–954. https://doi.org/10.1139/cjce-2014-0065
Ochrana, F., & Hrnčířová, K. (2015). Does the lowest bid price evaluation criterion make for a more efficient public procurement selection criterion? (Case of the Czech Republic). NI-SPAcee Journal of Public Administration and Policy, VIII(1), 41–59. https://doi.org/10.1515/nispa-2015-0003
Ochrana, F., & Maaytová, A. (2012). Východiska pro vytváření transparentního a nekorupčního systému zadávání veřejných zakázek. Ekonomický časopis, 60(7), 732–745. https://www.sav.sk/journals/uploads/0622121907%2012%20Ochrana-RS.pdf
Ochrana, F., & Stehlík, P. (2015). Předražování veřejných zakázek na stavební práce v České republic. Ekonomický časopis, 63(3), 227–238. https://www.sav.sk/journals/uploads/0620132003%2015%20Ochrana-Stehlik%20+%20RS.pdf
OECD. (2018). Governement at a glance – 2017: Public procurement. https://stats.oecd.org/Index.aspx?QueryId=78413
Owusu, E. K., Chan, A. P. C., & Hosseini, M. R. (2019). Impacts of anti-corruption barriers on the efficacy of anti-corruption measures in infrastructure projects: Implications for sustainable development. Journal of Cleaner Production, 246(31 October 2019), 1–15. https://doi.org/10.1016/j.jclepro.2019.119078
Pavel, J., & Rističová, S. (2015). Analysis of relationship between indicators of the public procurement market and the level of perceived corruption in EU Member States. Ekonomický časopis, 63(4), 372–394.
Pavel, J., & Sičáková-Beblavá, E. (2008). Transparentnosť trhu verejného obstarávania v Českej republike a v Slovenskej republike. Ekonomický časopis, 56(2), 168–181. https://www.sav.sk/journals/uploads/0920143802%2008%20Pavel-Sicakova.pdf
Pavel, J. (2018). Soukromé transakční náklady zadávání veřejných zakázek a faktory ovlivňující jejich výši. Politická ekonomie, 66(1), 20–34. https://doi.org/10.18267/j.polek.1175
Plaček, M., Schmidt, M., Ochrana, F., & Půček, M. (2016). Impact of selected factors regarding the efficiency of public procurement (the Case of the Czech Republic) with an emphasis on decentralization. Ekonomický časopis, 64(1), 22–26. https://www.sav.sk/journals/uploads/0617090401%2016%20Pla%c4%8dek%20+%20RS-F.pdf
Roman, A. V. (2017). Institutionalizing sustainability: A structural equation model of sustainable procurement in US public agencies. Journal of Cleaner Production, 143(01 February 2017), 1048–1059. https://doi.org/10.1016/j.jclepro.2016.12.014
Russo, R., Finnerty, Ch., Merks, P., & Petriccione, M. (2007). Fundamentals of international tax planning. IBFD. https://www.ibfd.org/IBFD-Products/Fundamentals-International-Tax-Planning
Schmidt, M., Ochrana, F., Plaček, M., & Půček, M. (2016). An empirical analysis of post-contractual behaviour in public works contracts: The Czech Case as a secondary comparison with the Slovak Republic. Ekonomický Časopis, 64(6), 501–518.
Schmidt, M. (2016). Stanovení nabídkových cen ve veřejných zakázkách: simulace. Politická Ekonomie, 64(5), 541–558. https://doi.org/10.18267/j.polek.1087
Sičáková-Beblavá, E., Klátik, P., & Beblavý, M. (2013). Ekonomické efekty elektronických aukcií na Slovensku. Ekonomický Časopis, 61(10), 1067–1078. https://www.sav.sk/journals/uploads/0621142810%2013%20Sicakova-Beblava%20a%20kol.pdf
Siew, R. Y. J. (2013). The relationship between sustainability practices and financial performance of construction companies. Smart and Sustainable Built Environment, 2(1), 6–27. https://doi.org/10.1108/20466091311325827
Šmíd, R., & Lajka, J. (2015). Kdo tahá za nitky české ekonomiky? Stastika & My, 5(3), 21–24. https://www.statistikaamy.cz/2015/03/kdo-taha-za-nitky-ceske-ekonomiky/
Stehlík, P. (2018). The competitive effect on public procurement for public service contracts: the case of the Czech Republic. Ekonomický Časopis, 66(4), 416–427. http://cejsh.icm.edu.pl/cejsh/element/bwmeta1.element.cejsh-e6b1ed17-5d47-4fef-914e-9d1a8497b129
Titl, V., & Geys, B. (2019). Political donatios and the allocation of public procurement contracts. European Economic Review, 111(January 2019), 443–458. https://doi.org/10.1016/j.euroecorev.2018.11.004
Vintilă, G., Onofrei, M., & Ţibulcă, I. L. (2014). Fiscal convergence in an enlarged European Union. Transylvanian Review of Administrative Sciences, 2014(41E), 213–223. http://rtsa.ro/tras/index.php/tras/article/view/164
Vyklický, M., Man, P., Heidu, R. R., & Jurčík, R. (2016). Qualitication requirements for foreign suppliers in public procurement – evidence from the Czech Republic. DANUBE: Law and Economics Review, 7(1), 19–39. https://doi.org/10.1515/danb-2016-0002
Wong, J. K. W., Chan, J. K. S., & Wadu, M. J. (2016). Facilitating effective green procurement in construction projects: An empirical study of the enablers. Journal of Cleaner Production, 135(01 November 2016), 859–871. https://doi.org/10.1016/j.jclepro.2016.07.001
WTO. (2018). General overview of WTO work on government procurement. https://www.wto.org/english/tratop_e/gproc_e/overview_e.htm
Yap, J. B. H., Lee, K. Y., & Skitmore, M. (2020). Analysing the causes of corruption in the Malaysian construction industry. Journal of Engineering, Design and Technology, 18(May 2020). https://doi.org/10.1108/JEDT-02-2020-0037
Yu, A. T. W., Yevu, S. K., & Nani, G. (2020). Towards an integration framework for promoting electronic procurement and sustainable procurement in the construction industry: A systematic literature review. Journal of Cleaner Production, 250(20 March 2020), 1–18. https://doi.org/10.1016/j.jclepro.2019.119493
Zákony pro lidi. (2018). Zákon č. 134/2016 Sb., o veřejných zakázkách, ve znění pozdějších předpisů. [Act No. 134/2016 Coll., on Public Procurement, as amended]. https://www.zakonyprolidi.cz/cs/2016-134