Turkish contractors compete on the road
Turkish engineers and contractors are signing off on major projects abroad, bringing billions of dollars into our country. However, tough tender processes and excessively low pricing are endangering profit margins in the sector. 12punto columnist and Head of the Civil Engineering Department at Istanbul Aydın University, Prof. Dr. Gökhan Arslan, stated in his article on the subject that algorithms to be developed by the Turkish Contractors Association are of critical importance for the healthy growth of the sector.
12punto
Turkish engineers and contractors are providing billions of dollars in added value to Turkey with the major projects they win abroad. However, challenging tender processes and low pricing are threatening profitability in the sector.
12punto columnist and Head of the Civil Engineering Department at Istanbul Aydın University, Prof. Dr. Gökhan Arslan, emphasized that algorithms to be developed by the Turkish Contractors Association as a solution to this problem would ensure healthy growth for the sector.
Prof. Dr. Gökhan Arslan included the following statements in his article:
"As you know, Turkish engineering and contracting is the pride of our country.
So far, they have created more than 500 billion dollars in added value from the projects they have carried out abroad.
By building infrastructure and superstructure projects in the Arab geography, Russia, and especially the nearby Turkestan regions, they have contributed to the development of our neighbors and kinsmen.
Recently, they have also been undertaking projects in Eastern Europe and the Balkans, our ancient lands.
They are successfully carrying out metro, highway, and railway constructions.
However, when we look at the tender processes, Turkish engineers and contractors are competing against each other.
Extremely tough tender processes and low pricing make profitability risky.
While trying to make a profit, they return from the country of construction with a loss.
I do not know if the Turkish Contractors Association is currently working on this issue.
I am sure they are developing an algorithm to ensure that these efforts do not turn into conflict and do not result in a Pyrrhic victory."