Possible cool-down periond within the building- and construction sector

In the coming years, several major building- and construction projects will be completed in Greenland, and this will have an impact on the level of activity within the industry. There has been talk of overheating for several years, and we must now expect that in some places we are entering a period when the level of activity will stabilize at a new level.

The secretariat has been in dialogue with members, municipalities and the Selfrule-Government about the situation. The picture is different depending on where you are in the country, and there are indications that the biggest "decline" will be experienced in Nuuk. Land contractors (blasting, digging, ground work etc.) will often be some of the first to feel the decline in activity levels.

The situation can be remedied by contractors bidding outside their own local areas and by the government and municipalities initiating new projects. In the latter case, it will also be a solution if projects planned for later can be brought forward. The biggest builder in Greenland is the public sector, and in several places they have recently acted on the basis of an impression of overheating and in some cases have held back initiating projects and licitations.

In our dialogue with the municipalities and the Selfrule-Government, we have been met with understanding, and we find that wherever possible the issue is being taken seriously. There is no interest on the part of the public in the construction industry suffering a setback, as it takes too long to re-establish if the activity level increases again later. In addition to bringing forward selected projects that were otherwise planned for later, there is also interest in some places in improving the market dialogue and communication. The GBA has offered to assist in sharing tenders through our communication channels.

The local authorities have also established a dialogue forum for the public developers, which aims to professionalize tendering and the format of tendering, including being realistic in timetables and using advance notices to a greater extent.

The general market forces are still in effect, which means that the individual companies will still have to carry out their own sales and marketing. The GBA has made the situation and possible potential problems visible to the government and municipalities, and in dialogue and with input from the members.

It must be expected that the developers will set new expectations for pricing as conditions change, and the construction companies do not have the same long pipelines in their order books. Creative solutions to tendered tasks and realistic communication are therefore extremely important.

The GBA's various industry committees for construction and building continue to follow the dialogue and communication.

Questions in this regard can be directed to the head of the secretariat, Karsten Lyberth-Klausen