Inflation raises project viability fears despite sector’s promise

Although the modern office sector will continue to grow, the current economic situation does give cause for concern for the construction sector, Dennis Köpp, business development director at fit out specialist Korus explained.

“My hope for next year for the office market is that we see an improvement on the subcontractor side. In the last two months we have experienced a lot of difficulties because most subcontractors in the supply chain were really overwhelmed,” Köpp said.

“Sometimes it was not even possible to get quotations. I really hope that we come to a more decent partnership to achieve what needs to be achieved.”

Köpp said he fears that the recession and inflation situation that we currently face has meant significant price increases which sometimes push clients to put projects on hold or even cancel them. “So these are the kind of fears that we have and difficulties that we see coming due to the current situation.”

However, there are some positive developments and certification such as LEED, DTMB and Well are becoming even more important and this is leading to a lot more requests from potential owners and project owners, even of existing buildings. “I do expect that this business will continuously grow and will become more important,” Köpp said.

Please click on the video above to watch the full interview or listen to the podcast below.