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Value creation

The process of value creation in the construction industry is shaped by many independent players. This results in an extremely complex construction value chain. In addition to construction companies like PORR, others intensively involved in the process include planning and engineering offices, suppliers and subcontractors, as well as the customers themselves.

When calculating value added, PORR uses the revenue for a given period as the basis. This means that numerous different activities that it performs along the construction value chain are included in the figure. In 2023, value added totalled EUR 1,620.7m and was therefore 9.2% higher than the previous year.

Construction value chain

As soon as the need for a new project arises, a tender is usually issued for the execution. There, the participating construction companies must fulfil specified requirements. Following a successful tendering procedure, the procurement and planning processes begins. These include procuring materials as well as selecting and commissioning subcontractors. In addition, hazard, opportunity and risk analyses are carried out and occupational health and safety and environmental protection are ensured. In the subsequent construction and project preparation phase, the construction site is set up and detailed personnel and logistics planning is carried out. This is continuously adapted and optimised.

Construction and project realisation usually represent the largest contribution to value creation for PORR. The duration of this phase can vary depending on the type and scope of the respective project. Building construction projects, such as residential and industrial buildings, generally have shorter construction periods, while civil engineering projects can be expected to take several years. The completion of a project is marked by the handover to the client. The building then enters the utilisation phase. At the end of the utilisation phase, PORR takes over the revitalisation or demolition and the professional recycling as well as the landfilling or disposal of materials. The aim is to return as many building materials as possible to the construction cycle.

Sustainability along the entire construction value chain is a key concern for PORR and one that it has been pursuing with great commitment for years. To ensure this sustainability, the company liaises closely with all project participants. When selecting business partners and reducing risks along the value chain, PORR relies on full compliance with the principles set out in the Codes of Conduct for staff and business partners.