The problems of construction companies’ economic behaviour in market economy conditions and the ways of solving them

Khatuna Arabuli

For adapting construction enterprises to the new economic environment it is necessary to create by joint efforts of the construction complex and investors a new mechanism of their financial and economic cooperation.

In the process of formation of the new economic system, protection of the rights and interests of entrepreneurs in construction sector requires special attention along with legal provision of investment activities. In case of neglect to these two factors it will be more difficult for us to attract investments that we need so much and rehabilitate the sector. In order to create favorable conditions for attracting foreign investments, it is necessary to work out the program that will be agreed upon by the constructors and investors, that needs macroeconomic support of the Government and optimal structure of the construction sector.
Diversification of production requires special attention in order to provide stable work of construction companies during the transitional period when the process of companies’ activities is expanded and they enter other spheres in addition to the construction one, which gives them an opportunity to increase their solidity in changing and hardly predictable environment. For this purpose there function technical equipment and carrier enterprises, and banking structures.
Market economy and its integral factor – competition, set new tasks for construction companies, for instance, market structure has an effect on business effectiveness of construction companies, which, in itself, is rather contradictory by nature.
Prices often represent the main tool in competition struggle, which is the indicator of the fact that marketing and sales service is not sufficiently developed in companies. Offering of the produce at lower prices in comparison to the competitors will have a short-term effect and it is losing in the long run.
Development of informational technologies has a peculiar effect on choosing of competitive strategy. Since obtaining of information about alternative produce and services does not represent any difficulty, there occurs a certain leveling of qualitative properties of the produce. As a result it becomes more difficult to make a choice in buying of the unit according to its consumer properties. Hence, there is competition not between different kinds of produce but between the companies that offer it. That is why construction organizations should accentuate creation of distinguishing factors and positioning. Solving of these and other organizational and structural problems should not be entrusted to spontaneous market self regulation, since absence of regulation levers leads us to unjustified growth of expenses. Regulation measures, first of all, should be directed to seeking optimal structures of work implementation.