📋 Tender Overview
The new head of the Railway Administration Tomas Toth announced the first phase of the organizations transformation. Starting in early April he is adjusting the leadership structure centralizing selected agendas limiting expenses and preparing changes in procurement processes. The aim of the changes which are closely coordinated with the Ministry of Transport is to open the railway market to a wider range of suppliers increase competition and achieve savings while maintaining the quality of projects.
The changes will contribute to a more efficient functioning of railway infrastructure and a more responsible use of public funds. The railway is an important backbone of transport and has a fundamental impact on the economy and quality of life in the Czech Republic. State money must be used as effectively as possible. I wish the new general director success in cutting unnecessary bureaucracy and setting up the entire functioning of the Railway Administration so that railway infrastructure can be built efficiently quickly and at a lower cost says Minister of Transport Ivan Bednarik.
Thanks to the announced steps the Railway Administration will save 335.6 million annually without affecting operational staff. There has been a very robust leadership structure here for a long time so I expected to encounter a much greater degree of resistance to changes. However in the first round we managed to find consensus at the level of the entire management which I consider a success and I thank my colleagues for their approach says Tomas Toth.
At the last meeting the board of directors of the Railway Administration approved the proposed steps of the new leadership led by its chairman Martin Kolovratnik and initiated the process of changes. The Railway Administration is one of the most significant companies in the Czech Republic. Therefore I will support it to behave like a modern investor that can manage public funds well while also being characterized by high-quality projects says Martin Kolovratnik.
Public contracts: removing barriers and competing by professions Procurement processes will be opened to a wider range of suppliers due to the changes. The Railway Administration will adjust qualification requirements start using preliminary market consultations more and reduce administrative barriers that may currently hinder the participation of smaller or foreign companies. The entry of such interested parties into our railway market should also be facilitated by the revision of technical requirements and the gradual recognition of selected foreign certifications.
For larger investment projects the Railway Administration wants to more frequently use the division of contracts into individual parts or professions thus separating construction work from technological units for example. This approach should allow for the involvement of a larger number of specialized companies reduce dependence on a limited number of large suppliers and thus lower contract prices. At the same time there are plans to deepen the principle of transparency including more detailed publication of prices and items in bids and to make broader use of the Design & Build principle where the nature of the project allows it.
A new management style brings better coordination across the Railway Administration The management structure will be simplified from April resulting in significant operational savings. The Railway Administration will also reduce marketing costs and expenses for IT and legal services by 20 percent. At the same time a total of 121 jobs will be eliminated with layoffs not affecting operational staff. The saved money will primarily be used by the Railway Administration for the preparation of investment projects and ensuring the long-term sustainable functioning of the organization.
Specifically the changes will affect for example the area of operational management. The current 21 operational districts within the regional directorates will be newly integrated under central dispatching workplaces in Prague and Prerov. Centralizing the preparation of public contracts and business activities which will move from several different units to one department will also bring higher efficiency.
