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Wooden housing development: statistics and forecasts

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Offer Description - Wooden housing development: statistics and forecasts

Wooden house is not only a luxury but also a guarantee of environmentally safe housing. The practice of construction of wooden buildings in the West is known for a long time.  Ukrainians gradually follow this tradition.

According to statistics, the demand for wooden houses rose by 20% within 8 years (from 2000 to 2008). Overdue economic crisis has frozen the progressive demand but analysts say that the pace of the market of wooden housing development will resume.

The target audience of the building companies is people with average income and above average as well as commercial organizations, hotels and hostels.

The companies specializing in the construction of wooden houses have to meet the challenge. First of all, they should possess the license. The license indicates that the organization responds the technical characteristics and competence of personnel allowed to carry out the construction works. The inspection is performed by an expert committee, and the very license is issued by the State Architectural and Construction Inspectorate on the basis of expert opinion. Duration of the initial license is 3 years, the recurring license is legal during 5 years.

How much should you pay to obtain the license?

The obtaining of the license which allows to perform all kinds of work costs 9000 UAH, the cost of the license allowing to perform the assembly and finishing work will comprise 5000 UAH. Some companies appeal directly to the centers of expertise, especially if there are problems. For some “award” their problem will be solved. But in case some inspection follows such company is at risk of losing its license.

There are some firms that operate without a license. Their vantage point is that they ask for the price which is 30-40% cheaper than the one of the licensed company. Therefore, customers agree to deal with them.

Is the initial investment needed to run the construction company?

Many businesses say that advance payment of the client is enough to cover the cost of buying tools and some materials. Raw materials are mainly purchased from the Ukrainian manufacturer. The materials from abroad are 40% more expensive, plus the company must wait for delivery of the material.

If a building company is a newcomer to the market it can act as a subcontractor in the construction, that is to carry out the stipulated work. This practice is quite successful at first, allowing to navigate the market and establish the necessary links.

The client not always chooses a very well-known firm. It is useful to have a website that positions the company in a good way. Using media means also works.

Where to find qualified workers?

Experiences managers note a well-developed practice of luring workers. One employer contributes to issuing the document that allows a person to do any kind of work. Then the employer of another company offers them more money and people agree to the terms.

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