Strategic Insights and Analysis for Informed Decision-Making
The primary objective of the consultant's assignment was to conduct an in-depth Market Search and Analysis on developments in the construction industry in Europe and Greece over the past two decades (2002 – present). This analysis focused particularly on trends affecting the Construction Cost Index (CCI), Producer Price Index (PPI), and other relevant indexes related to construction materials, energy costs, and more. Special attention was given to the disruptive effects of the Covid-19 pandemic and the Ukraine War, both of which have had lasting impacts on the construction sector.
The consultant's work involved compiling a comprehensive Technical Report that presented the outcomes of the market analysis. The report included comparisons of construction costs at several critical points:
- The initial Concessionaire's Offer (19.12.2019) vs. the Concessionaire’s Request for Arbitration (22.09.2022).
- The initial Concessionaire's Offer (19.12.2019) vs. the present (summer 2023).
- The Concessionaire’s Offer confirmation (30.06.2021) vs. the Request for Arbitration (22.09.2022).
- The Concessionaire’s Offer confirmation (30.06.2021) vs. the present (summer 2023).
- The Concession Agreement Amendment (15.12.2021) vs. the Request for Arbitration (22.09.2022).
- The Concession Agreement Amendment (15.12.2021) vs. the present (summer 2023).
Outcome:
The detailed analysis provided the APION KLEOS Construction Joint Venture with a clear, data-driven understanding of the fluctuating costs in the construction industry, offering comparisons at crucial stages of the concession agreement. The consultant’s insights were instrumental in evaluating the impact of external factors such as the Covid-19 pandemic and the Ukraine War on construction costs. By synthesizing these complex data points, the report enabled the Joint Venture to make informed decisions, particularly in regard to ongoing negotiations and arbitration requests. The outcome of the analysis provided a foundation for strategic planning, resource allocation, and risk management in future phases of construction projects, ensuring that APION KLEOS could adapt to evolving economic conditions.
