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Home Improvement Centre is the project of reconstruction of VET school workshop premises, that would mean provision of consultancy service to regional construction SMEs, as well as to investors and developers regarding their projects (energy efficiency, greater value for money, time management...)
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1
OBRTNIĈKA ŠKOLA POŢEGA
OSJEĈKA 33
34000 POŢEGA
SLAVONIA CONSTRUCTION GUILD Home Improvement Referral & Resource Network Centre
FEASIBILITY STUDY
COST-BENEFIT ANALYSIS
Prepared by: mr.sc. DIJANA FERKOVIĆ, dipl.oec. & team
December 2012
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ACKNOWLEDGEMENTS
We are grateful to Mrs Iva Snajder, Vocational school Pozega principle which
served as the financial sponsor of this feasibility study, and also the informal
FORUM of construction crafts in which strong local support for regional
SLAVONIA CONSTRUCTION GUILD was identified.
We also wish to thank the many professionals and people of Pozega,
Slavonski Brod and their counties who generously contributed time,
information and enthusiasm to our research process.
We appreciate the interest and guidance provided by the Croatian
Chamber of Commerce and Crafts as we explored the justification of setting
the SLAVONIA CONSTRUCTION GUILD in Pozega's Vocational school premises.
Special thanks to architects, designers, maintenance experts and current
investors for their encouragement as well as sharing detailed and specific
information about the construction projects with us.
Our project also benefited greatly from visiting existing Business incubators in
the county (Pakrac and Pleternica), as well as Entrepreneurial Centres,
working within them.
We wish to thank our reviewers for strengthening our report.
We very much appreciate the confidence and financial support provided by
the Vocational school, and their teachers. This support was essential for
moving our project beyond the stage of „just another good idea“, and
allowed us to systematically investigate the viability of a regional construction
guild, and its operative headquarters in form of HOME IMPROVEMENT CENTRE
in Pozega.
3
TABLE OF CONTENTS
Executive Summary…………………………..……………………………………. 4
1. Project Overview …………..…………………………………………………… 6
1.1. Background ………..………………………………………………………. 7
1.2. Why Construction Guild …………………………………………………. 8
1.3. Community Service Goals ……..……………………………………….. 9
1.4. Mission ………………………………………………………………………. 9
1.5. Slavonia Construction Guild: A Snapshot …….……………………… 10
2. Home Improvement sector …..……………………………………………… 12
3. Marketing & Sales ………..……………………………………………………. 14
3.1. Marketing ……….…………………………………………………………. 15
3.2. Initial Target Markets & Primary Clients ………………………………. 18
4. Technical an Organisational Requirements …………………………….. 20
4.1. Location ……….…………………………………………………………... 20
4.2. Referral & Resource Network Centre ………………………………… 21
4.2.1. Premises and layout ……..………………………………………… 22
4.2.2. Equipment and resources ……..………………………………… 27
4.2.3. Specialised features ……….……………………………………… 29
4.2.4. Energy Efficiency Specialization ……………………………….. 30
4.3. Home Improvement Referral & Resource Network Centre
Business Model……………………………………………………………… 32
4.4. Key Staff Positions…………………………………………………………. 34
5. Services………………………………………………………………………….. 35
5.1. Delivery of Services to Construction SMEs…………………………… 36
5.2. Services to Investors …………………………………………………….. 40
6. Financial Plan…………………………………………………………………… 41
6.1. Estimates of Capital Costs………………………………………………. 41
6.2. Estimates of Annual Operating Costs………………………………… 42
6.2.1. Human Resources…………………………………………………. 42
6.2.2. Utility Costs………………………………………………………….. 43
6.2.3. Transportation and Study Visit Costs………………………….. 43
6.2.4. Other Services Costs……………………………………………… 43
6.3. Projected Income and Profit/Loss……………………………………. 44
7. Feasibility Assessment………………………………………………………… 47
8. Possible Sources of Financing………………………………………………. 49
9. Conclusion & Recommendations…………………………………………. 50
ANNEXES……………………………………………………………………………… 51
COST-BENEFIT ANALYSIS ………………………………………………………….. 58
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EXECUTIVE SUMMARY
The proposed project of setting and operating a functional HOME
IMPROVEMENT CENTRE (as Slavonia Construction Guild's operative body and
home improvement referral and resource network) is being designed to
significantly contribute to raise of competitiveness of regional construction
crafts and SMEs by improving access to reliable information, training and
education, relevant specialized services and networking and synergy
between individual construction crafts and SMEs in the region.
As part of Vocational school Pozega and Slavonia Construction Guild, the
Home Improvement Centre would provide improved access to services and
information (knowledge, skills) important for development of property-related
investments in the region. Raising the level of education and training within
the workforce (and construction companies) is critical to the region's overall
economic development. Upgrading employee skills in construction
companies will make them more competitive in the marketplace, while
upgrading the skills of the region's workforce pool will make it more attractive
for other related industries to move into the area. Offering modern materials
and methods in construction, that save energy, time and money for investors,
should inspire new investments, and create a new demand for construction
works in the region.
This study analyse the feasibility of building the Home Improvement Centre.
The summary of the major findings:
- A need for workers with relevant skills in a wide variety of technical
areas in regional construction SMEs is recognized. Also, there is a need
for existing engineers to have access to education in technology
management
- The current educational attainment level of unemployed residents in
the county is low. The greatest number of registered unemployed
persons has finished secondary education. However, the unemployed
not-registered are mostly without occupations or skills. The fact is that
many residents need to upgrade their work related skills and education
levels
- The Centre will provide on-going opportunities for improving existing
skills, developing new skills and to attain additional certificates and
degrees (in school or other institutions)
- For the region, the Home Improvement Centre would provide a hub for
economic development efforts and raising level of workforce that will
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improve the quality of life for citizens and attract new business and
industry
- The Centre would provide improved work life opportunities for technical
staff, joint public-private investment projects
- For the educational institutions the Centre would provide prestige
access to jobs in construction companies for students, collaboration
with other entities, and enhanced opportunities for program
development and research
- The Centre will have a regional focus and will be a resource for the
wider Slavonia region (not only Pozesko-slavonska county)
- The Center would be established as a separate department of
educational public high-school institution and be managed by the
School Board, and Slavonia Construction Guild Board
- The Center would be approximately 473m2 with ample flexible space.
Large hanger door will allow larger pieces of equipment to be moved
in and out of the facility.
- The anticipated capital cost is EUR 646.611 to build and equip the
Center while the recommended initial annual operating budget is EUR
5.000.
- The Center would have broadband wireless access to the Internet
throughout the facility and be equipped with state-of-the-art
computing and two-way audio / video systems
- Overall, while not without major challenges, the creation of a Home
Improvement Center is a laudable project with great potential and
needed benefits for the region.
Ultimately, it can be considered that the Centre could operate sustainably
without the need for extensive fundraising or additional budgetary
pressure. In conclusion, we believe this project is an exciting way to
provide the regional construction sector with relevant business and
educational support. Funding support should be sought to ensure the steps
for set the up of Centre, so that is is organised in timely manner, so that the
project does not lose momentum.
6
1. PROJECT OVERVIEW
This document assesses the viability of Home Improvement Centre to serve
the Slavonian Construction Guild, VET school Construction Department and
investors in projects related to construction, building and property
improvement.
The primary goal of the analysis is to answer: Will the Home Improvement
Centre justify its establishment, will it be self-sustainable and should the
initiators of the project proceed with it?
The feasibility study of the Centre was conducted in period from October
2012 to January 2013. This investigation addresses the above question by 1)
identifying how the various components of a Slavonia Construction Guild
affect in order to serve the needs of the sector; and 2) developing models to
explore the potential pros and cons, and the costs and benefits of our
decisions.
Conducting this analysis allowed us to gain a more thorough understanding
of the opportunities and challenges in locating, designing and building a
Home Improvement Centre. It also helped define organisation and
functioning models and scenarios of possible directions in which Centre will
go. The analysis helped to describe in more details all aspects of the future
Home Improvement Centre.
The level of specificity of information provided in this study is dependent upon
the depth in which we were able to investigate the components, and the
degree to which we could reach resolution on particular issues.
Consequently, this feasibility study is best viewed as a solid point for
developing more refined business and operational plan.
7
1.1. BACKGROUND
Over the last decade, a construction sector (in Croatia, as well as in Pozesko-
slavonska county) has experienced a strong rise and even stronger decline in
terms of economic performance. Construction has in the last two years (2011
and 2012) lost more than 40% of total number of employees, while many
construction companies, due to chronic insolvency, have bankrupted.
VET school with its Construction Department has felt strongly all the market
changes, and it reflected on the school's image and enrolment of students.
Construction jobs have for long been considered unwanted and less
attractive than some other service occupations. This is why the school
principal (Snajder) together with the school internship program coordinator
(Kovacevic) initiated in 2011 the consultations with the associate construction
companies (18 companies) in order to identify the reasons of weak
construction SMEs economic performance in the region.
The group reviewed several scenarios and configurations for Home
Improvement Centre including various purposes and outcomes that might
benefit the community and construction business sector. No similar projects or
institutions were seen in Croatia. Only segments of Home Improvement
Centre's activities can be noticed, but in different form. The project
developed in this case would present a transformation of CLUSTER-
VOCATIONAL SCHOOL-CONSULTANCY-CHAMBER of companies, comprised in
a totally different form. Similar projects have been important in shaping the
thinking and enthusiasm of project partners. However, none existing examples
of business-support institutions could be exactly replicated, nor did any fit
exactly the specific regional needs regarding the construction sector.
Consequently, in September 2012 the group of project partners developed a
new framework to help organise their own investigation of what would work in
Pozesko-slavonska county and its construction sector. Home Improvement
Centre used all available resources in the locality, and took into consideration
the specific requirements of the regional construction sector. During the
following months, a sequence of interviews were conducted with
construction entrepreneurs, in order to 1) identify potential members of
Slavonia Construction Guild; 2) learn about investment preferences in the
region; 3) explore how a new business-support could meet the needs of
companies and crafts, as well as their clients; 4) gauge SMEs' interest in
becoming a member of the Guild (and user of Centre's services).
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1.2. WHY CONSTRUCTION GUILD
There are several reasons for developing a specialised regional construction
guild. The Guild primarily serves as networking tool in order to develop
cooperation between competing small companies and crafts.
The Guild is owned by its members and driven by the needs of its clients.
Members of the Guild are primarily the smallest family-run construction crafts
and companies. Its members belong to wide range of disciplines (brickwork,
tunnelling, electricity, paving, tile works, building carpentry, insulation …).
Members benefit of access to Guild from a wide variety of expertise and
knowledge that assists them to run their business more efficiently. The Guild
runs lectures and presentation, but also connects by round-table meetings
and business brunch gatherings and discussions.
Guild will protect its members via expert assistance for compliance, support
and indemnification in their daily businesses. However, being a member of
Guild is much more than just access to free relevant educational seminars
and trainings. The seminars and educational themes cover a range of topical
subjects across sectorial expertise, but also law, tax and policies. High profile
speakers will be hosted regularly by the Guild.
Guild works closely with labour agency (Croatian Employment Service) in
securing that workers are available and that no conflicts come out of the
about legal regulations. VET school provides internship of young construction
school students.
Guild representatives and Home Improvement Centre staff develop close
relationship with all Guild members and the type of trust that comes with a
long lasting, quality service.
In addition to serving its members, Guild also helps them meet the demands
of the companies above them in the contractual chain (if member is
subcontractor) in order to achieve security in payments and respecting the
contractual requirements.
Towards the clients, the Guild provides contact to all construction (and
property related) services. It helps and connects the client with the
contracting companies or individual subcontractors. In doing so, the Guild
absorbs segments of legal and tax risks that would otherwise be borne by
clients or construction companies.
9
1.3. COMMUNITY SERVICE GOALS
There are numerous reasons for developing Home Improvement Centre as
Slavonia Construction Guild's operative institution.
Project partners envision Home Improvement Centre serving and benefiting
community of Pozesko-slavonska county (and wider) by
Increasing investments in property improvement in the region
Improving business performance (profitability, efficiency) of regional
construction SMEs
Creating small construction companies partnerships for easier applying
to public tendering procedures
Creating local employment and training opportunities
Educating local community and investors about energy efficient
solutions in construction (and building maintenance) by holding
lectures, workshops to the public
Increasing the availability, quality and quantity of local property
improvement initiatives and investments (building and construction)
Providing services and advice for local population
Assisting construction SMEs in attempt to respect all legal requirements
about construction business
Feeding eventual excess of income over costs back to the community
through improvement of VET school construction department and
conditions for work in vocational program
1.4. MISSION
… to significantly contribute to the growth of regional construction sector and
increase of number and value of investments into property improvement or
new construction in the region. Access to improved and better services of
local companies will stimulate energy efficient initiatives and activities.
Home Improvement Centre will achieve this by forming a direct connection
between investors (clients) and construction companies built on knowledge
exchange and relevant information. Strong relationship between members of
the Guild will become a seed of new and stronger joint cooperation and
synergy in operative performance.
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1.5. SLAVONIA CONSTRUCTION GUILD
The Slavonia Construction Guild is a networking platform that assists in
provision and search of high-quality construction services in the region. Its
members' have great overall experience in working as contractors and
subcontractors and through their connection achieve even higher level of
reliability, quality and sustainability.
Slavonia Construction Guild will be an economical interest grouping,
established by construction companies and institutions in the fields of building
design, consulting, engineering, contracting and production of building
products. The main goal of the Guild is to improve domestic regional
competitiveness of its members through commercial cooperation and
networking, education, training and even some policy action. Guild vision is
to become a network of construction companies offering complete solutions
for the regional (and wider) market. Guild will build its long term
competitiveness on technological and organisational innovations,
development and quality.
Slavonia Construction Guild operates informally through Home Improvement
Centre, coordinating and assisting the work of the Centre's work by direct
involvement in its organisation and performance.
ACTIVITIES: By providing its members with infrastructure, services and
coordination of development projects, the Slavonia Construction Guild
creates conditions for:
- Increase of productivity and business efficiency
- Increase of innovation and transfer of good practices
- The growth and development of competitiveness through the
application of clustering principles
- Efficient training for personnel
- Mutual business and other cooperation in the value chain
- Search for new business opportunities in the region, and wider
- Protecting interests and cooperating with the government and other
public institutions, financial organisation and other.
KEY TECHNOLOGIES that Slavonia Construction Guild members could offer
are: structural and architectural design of buildings, roads and highways,
bridges, viaducts, underpasses, overpasses, galleries and retaining walls,
wastewater treatment plants, hydropower plants, repair works and special
technical solutions, consulting, engineering of buildings and civil engineering
works, in indoor environment, energy in buildings, in geotechnics, geology,
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technical consulting, quality assurance and supervision, expert opinions,
inspection, examinations and testing of concrete, mortar and of products,
aggregates and stones, conformity assessment and certification, construction
contracting of buildings (apartments, business and industrial buildings), civil
engineering works, communal infrastructure, external arrangements (asphalt,
stone-pits, horticulture), prefabricated products for construction of
apartments, hotels, hospitals, construction materials and products,
stonecutting, building shuttering system, building and stone restoration,
sustainable construction, environment management systems ISO14000,
EMAC, IPPC.
Guild defines topic-related teams of experts (tax, accountancy, law,
construction, energy, financing) that work jointly on achievement of full legal
and tax compliance of work of its members.
Guild does not employ staff, but rather works through Home Improvement
Centre work, and work of individual Guild members. It can be expected, after
the initiation phase, when members of Guild experience the concrete
advantage of networking and joining the Guild, there could be suggestions of
further formalization of the network, and development of professional service
to each of the members.
Slavonia Construction Guild staunches commitment to genuine self-
employment.
GUILD BENEFITS
FOR COMPANIES
-Identification of common
needs and its
improvement
-mutual development
projects
-cost sharing
-development of human
resources
-increase innovation
-business climate
improvements
-access to new markets
FOR EDUCATIONAL
INSTITUTIONS
-knowledge of industry
needs
-tailor-made education
-applied research
-profit from research and
development
-technology transfer
-access to funds
FOR PUBLIC SPHERE
-targeted support
-support of competitive
industry
-region specializations
-FDI attraction
-improved
competitiveness
Improved communication, common needs identification
Realization of mutual projects
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2. HOME IMPROVEMENT SECTOR
Home Improvement is a concept that joins together several interrelated
sectors of economy: building and construction; home maintenance;
installation and repair (heating, cooling), energy efficient investments and
interior optimisation and redesign. Primarily it focuses on the construction
sector, that covers in a wider sense all these mentioned subsectors.
The construction sector in Croatia makes a very important part of the
economy. It has reached in pre-crisis 2008. 8,2% of GDP, thanks to the growing
investments (capital infrastructural projects, mainly road construction), but
also apartment building. The construction sector has suffered a great loss in
the last 2-3 years, coming to a level of 6,2% of GDP. Greater supply of
demand for new apartments was not adequately compensated by other
construction or home improvement activities on the market. The trend is not
positive. The number of issued building permits is showing even worse
immediate future for construction if there will be no readjustments to market
change.
Significant fall is evident not only in
building construction segment, but
also i traffic infrastructure. The
overall investment capacity of
investors and construction industry
is lower.
Since 2008 the number of persons
employed in construction sector
Number of building permits, source: DZS has constantly decreased,
approximately for 20.000 workers. Around 38% of all employed work in
segment of building construction, 33% work in civil engineering and the rest
are working in specialised construction sectors.
In 2011 there were 14.784 construction companies active in Croatia. 88% of
them are smaller companies and crafts employing less than 10 workers.
Generally, economic fall, unemployment growth and the decrease of
income disposable for investments (due to the growing costs of food and
communal costs) create a consumer's pessimism and delay the decisions to
invest.
13
The average salary in construction sector in Croatia in 2011 was 4.522kn that is
18% lower than Croatian average. The reason lies primarily in the lower
educational level of construction workers (mostly without qualifications).
The analysts expect in 2013 the continuation of negative trends in
construction sector in Croatia. High unemployment, stagnation of income,
low crediting, great number of unsold apartments, all influence the decline of
construction works. Low-quality property prices are falling, and existing
entrepreneurs (builders) should redirect towards the property improvement
investments, in order to raise the value while waiting for buyers.
Joining the EU (1.7.2013.) will turn the trend towards the greater demand.
Available EU funds for investments should also affect positively the
construction sector market. However, EU introduces many quality related
preconditions regarding the property (legality, energy efficiency,
environmentally friendly processes, adequate waste disposal, etc.).
Growth of private investments is slowed down by administrative barriers and
complicated procedures. The potential for growths can be seen in smaller
reconstruction and renovation projects of public building (kindergartens,
schools, building certification, etc.), in some cases funded by the EU funds.
In the following years, it is expected that ENERGY and energy efficiency will
be in focus of investors, as well as environmentally important projects
(sewage, water supply and protection, and similar).
Due to the great competition from large European construction companies, it
is expected that some Croatian companies will not manage and will lose
battle against competitors. This is why the segment of domestic HOME
IMPROVEMENT projects is very important, since it is not interesting for the EU
competition and leaves a vast area of market niches where construction
crafts and SMEs can act. The solution is perceived in establishing of flexible
and competitive CLUSTERS or other forms of associations based on well
familiar knowledge, tradition and competences.
Home Improvement Sector, as part of construction sector in general, is not
without perspective (on the contrary). However, the existing model of work is
spent. Decrease of living standard will influence the level of new construction
and put stronger focus on adaptations, sanations, improvements,
optimisation, and similar activities related to construction field.
14
3. MARKETING AND SALES
Marketing and sales of Home Improvement Centre are derived from the
actual situation of marketing and sales (business performance) of regional
construction sector, that is Slavonia Construction Guild members and other
construction sector actors.
Construction companies in the county are going through a challenging
period of adaptation, primarily due to previously described situation on
national level, but also because of numerous upfront costs. In a competitive
environment, operating margins of construction companies are slim, at ca.
5%. During construction booms, margins may reach higher levels, but still not
high compared to other sectors.
Key success factors for regional construction SMEs are:
Efficient project management, especially in terms of planning
(projecting, budgeting, forecasting availability of needed materials)
Economies of scale and available resources (access to financing,
labour force), possibly through networking and cooperation
Reliability of contractors and subcontractors
And quality of construction work.
The recognized key risks are:
Underbids (bidding a contract at a price that turns out to be too low to
complete the project)
Possible cash flow instability due to early-on costs and relatively late
incomes in most projects
Rising costs of building materials and labour.
Investors themselves are also face with several risks, and this must be taken
into account when observing the regional construction market. They
experience the risks of: high administrative barriers, rising costs of services and
materials, high level of land prices, high interest rates reducing access to
financing (both for investors and construction companies).
In this changing and hard to predict market environment for construction and
construction related SMEs in the region, HOME IMPROVEMENT CENTRE will seek
opportunities to help companies and investors (both parties of the
investment) achieve greater satisfaction with the investment in terms of return
and profit.
15
3.1. MARKETING
Certain aspects of the county's construction sector have been investigated in
order to define how Home Improvement Centre should act and operate. The
defined characteristics of the regional construction SME sector in Pozesko-
slavonska county (and even wider) are:
There is a public commitment that small construction companies survive
Quality of service and customer relations are not on high level
Accumulated experience and practice of construction crafts
Population decline, particularly in villages
Industrial decline, due to the difficult process of transition to a free
economy and closing down of big systems; lack of domestic and
foreign direct investments, dependence on imported goods, negative
financial results of companies
High unemployment in the county, while the number of employed
persons in the county shows even worse situation (large number of
inactive population, or emigration)
Stagnation in investments in property due to economic crisis
Poor working conditions and low educational standard
Fast changing legal framework.
Considering the above described situational facts, Home Improvement
Centre MUST BE A REGIONAL CENTRE serving Pozesko-slavonska county, but
equally all neighbouring counties. In its work, it must focus on emphasising the
strengths of the situation, and mitigating the weaknesses. Hence, from the
above defined facts, arise possible services that can be provided in the
Centre:
SITUATION:
-There is a public commitment that small
construction companies survive
-Quality of service and customer relations are
not on high level
-Accumulated experience and practice of
construction crafts
-Population decline, particularly in villages
-Industrial decline, due to the difficult process
of transition to a free economy and closing
down of big systems; lack of domestic and
foreign direct investments, dependence on
imported goods, negative financial results of
companies
ANSWER:
-public-private partnership and networks
could trigger the development
-training and skills improvement is in focus of
educational activities
-promotional efforts must be improved in
order to attract new clients
-investments into renovation, demolish
-assisting the growth of SMEs, management
and entrepreneurial training, consultancy on
foreign supply, accounting basics training,
cash-flow control in SME businesses,
successful contracting to large companies,
quality service management upgrade
16
SITUATION:
-unemployment in the county, while the
number of employed persons in the county
shows even worse situation (large number of
inactive population, or emigration)
-Stagnation in investments in property due to
economic crisis
-Poor working conditions and low
educational standard
-Fast changing legal framework
ANSWER:
-human resources development, how to
recruit the best people, investing into
people, reskilling of labour, new markets in
other regions
-informing about investments in property and
home improvement (cost reduction)
-working and health conditions on workplace
standard implementation
-training on legal requirements for SMEs
It is important that the Centre starts small. It will probably take 3-5 years for
Centre to fully develop all its envisaged services and to become a reliable
and recognisable point in the eyes of construction SMEs, as well as their
clients. Stakeholders must be patient during the early developmental stages.
It is also important to note that the development and strengthening of
Slavonia Construction Guild is what is going to drive the Home Improvement
Centre forward.
Initially, the focus of the Home Improvement Centre should be on developing
programs and activities that would benefit the Slavonia Construction Guild
members, their employees and employees of their subcontractors. It should
begin by utilizing educational and training programs provided by the project
initiator (VET school) and their associates (suppliers of specialized materials
and equipment). As the Centre develops, it should expand on these
programs (management, tendering, work safety, energy efficiency,
informative lectures for public and investors …).
Programs should be selected according to the level of its immediate practical
application, and based on the real demand for concrete training curricula
(or subject of presentation). Enhancement of recruitment of new workers and
retaining the current ones should be priority in terms of goals and objectives
of these programs (considering the benefits for VET school).
A number of technical training (and certification) programs are needed for
the region and would be offered at the Centre. Participants will be able to
receive training in carpentry, masonry, electrical, HVAC, plumbing, tiling,
flooring, and other related construction skills to prove the needed skills sets for
area's employers.
Centre will develop ad-hoc and tailor-made programs according to
particular need of construction companies (specialized skills in application of
new materials or methods, computer training, drainage, etc.).
17
In the second phase of its development, Home Improvement Centre should
develop in sense of providing online and distance learning technologies, in
order to expand to the wider area than the regional market, and to achieve
the sufficient critical mass to be cost effective in providing educational
offerings.
Details of market approach (4P: product, price, promotion, placement) will
be defined in the Marketing Strategy that must be developed immediately
after the launch of the project. Marketing Strategy should build upon and
promote business opportunities in the prominent construction and building
sector of the region. Marketing Strategy must have these key strategic aims:
Expansion of the „brand“ of Home Improvement Centre by
communication of its benefits that „Under the Slavonia Construction
Guild you are in a better position working together than you are
individually“
Developing longer term sectorial partnership in which local companies
and educational institutions can collaborate and work together on joint
Guild initiatives
Promoting construction and building sectors as cornerstone industry of
the County's economy and as a strategic knowledge based growth
sector, that can attract additional investment, talent and jobs
Communicate to citizens the many opportunities for smart solutions in
their properties and homes that save energy and money.
18
3.2. INITIAL TARGET MARKETS AND PRIMARY CLIENTS
The initial target market of the project make companies and population of
Pozesko-slavonska county, primarily construction companies.
Recently, Pozesko-slavonska county has experienced a decline in each of the
most important industrial areas (textile, furniture, agriculture), and
employment futures of many of the residents are threatened. The initial
concept of Home Improvement Centre was developed in 2012 as a result of
the following identified needs related to providing residents with skills that
would ensure their employability: technical education, career education,
entrepreneurial skills, lifelong learning. Considering that construction sector is
one of the prosperous ones in the region, it was chosen to be supported
through this project.
Home Improvement Centre will become an umbrella organization, offering
different services to construction SMEs, but also their clients, and investors in
construction related projects in the region.
Since the project represent a unique and pioneer idea in the region, the
demand for the services of the Home Improvement Centre will have to be
created through well thought marketing campaign.
Primary clients of the Centre will belong to two main groups:
a) Construction SMEs in the region, at least 10 regular clients, members of
Slavonia Construction Guild; at least 20 occasional clients, participants
at Guild events and meetings; and at least 20 clients not interested in
activities of networking, but joining trainings and lectures.
b) Construction SMEs' clients – investors into their home improvement, at
least 60 participants in the first year of Home Improvement Centre's
work, to grow to expected annual number of participants at
informative lectures of 180 individual participants.
Secondary group of clients belong to (estimate cca 200 persons / year):
c) Unemployed persons, looking for quality education and training, or
connecting to available employers through network of the Guild
d) High-school students, improving their skills and getting relevant and
immediately applicable knowledge, connected to employers
e) Experts, consultants, developers, contractors, researchers, scientists in
search of partners for their projects.
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Developing various communication tactics will be crucial to disseminate
information to various target audiences. It is assumed that the „brand“ of
Home Improvement Centre will be maintained and incorporated into each of
these projects.
1.WEB PORTAL www.unapredenje-doma.hr
The Internet will be the main source of information for potential customers
seeking information about the regional construction opportunities, service
providers, members of Slavonia Construction Guild, smart construction
solutions, energy efficient building, etc. It is imperative that web portal
maintain a highly functional, informative and user-friendly website. In order to
achieve the full potential, it must be populated with relevant and timely
information. For example: industry news, articles, white papers, news clippings,
upcoming events in the region regarding new investments in the sector,
events, tradeshows, benefits of Slavonia Construction Guild, membership
conditions, testimonials from businesses in the sector, links to relevant
institutions, etc. Regular maintenance and updating is very important and
certain time and resources need to be put in place to ensure this. This website
should provide a favourable first impression of the Slavonia Construction Guild
and Home improvement Centre for those who visit it. It must be up-to-date,
well-populated and easy to use, at all times.
2.PROMO NOTEBOOK and other printed material
As a unique way of providing relevant information about the Home
Improvement Centre, the staff will contract a distinct product: Promo
Notebook. This will be a regular small (A5 format) notebook, with available
space for writing. The special feature of this book will be the information
about the Home Improvement Centre in the bookends, providing a quick
overview of the Guild and the Centre. This way, the information about the
Centre will stay longer at disposal to all that receive this promotional product.
Other very important element of the Centre's promotion are business cards,
created for all Home Improvement Centre staff, but also for the interested
Slavonia Construction Guild's members (with Guild LOGO), as a way of
creating a brand.
3.REGIONAL CRAFTS TRADESHOWS participation
Every year, there are tradeshows in Pozega and other towns (Pakrac,
Slavonski Brod) where participation of Slavonia Construction Guild and Home
Improvement Centre will be beneficiary for Guild members, as indirect way of
their presentation.
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4. TECHNICAL AND ORGANISATIONAL REQUIREMENTS
The project depends on the great support of local stakeholders. This is why the
project's technical and organisational elements should remain SIMPLE and
CLEAR, understood by all participants in the partnership.
4.1. LOCATION
The location of Home Improvement Centre is in the premises provided by the
Vocational school Pozega, above the existing construction workshops and
labs (masonry, carpentry, wall-painting). The building, that was used as horse
stable, is very old (more that 100 years) and it used to be a part of big manor's
property. Conservation experts were involved in the development of the
technical drawing in order to preserve all the architectual values of 19th
century. External outlook must be fully respected, while indoor lay out will be
adapted to the modern and relevant purpose, beneficial to the community.
21
VET school construction workshops April 2013
4.2. REFERRAL AND RESOURCE NETWORK CENTRE
Although a more detailed operations analysis and consisting expertise is
required prior to the initiation of operations, the following sections outline the
expected operational design of the Home Improvement Centre, run under
the Slavonia Construction Guild's mentorship.
Home Improvement Centre will develop in form of referral and resource
network centre for its users. In this sense, REFFERAL means that it provides users
(construction SMEs and investors) with efficient and quality service,
specialized in field of construction and energy efficiency. RESOURCE means
that it offers current and comprehensive information about all related topics,
or it directs towards the information source. NETWORK means that it relies on
the work and service of all involved project partners and their associates in
provision of above described services. Home Improvement Centre specializes
in answering questions about regional construction sector, but also about
Pozesko-slavonska county economy perspectives. Centre's staff help clients
navigate through all the Centre's resources and services, provide expert
referrals, and promote and provide ways for clients to get connected with
contractors and stay informed about their investment.
Home Improvement Centre will succeed only if construction sector in the
region shows increase rate in level of income and number of employees.
22
In the pioneer phase, in the first years of the Centre's work, it is important to
stick to the clear idea of Home Improvement Centre, with its defined goals
and strategy. A strong initiator (Vocational school Pozega) will remain for
some time an informal leader of the project, offering guidance and
motivating other stakeholders to join the project. Decision making must stay
simple, without procedures (by consensus). Assignment of duties should be
based on individual wishes, more than qualifications (since the level of
motivation is a crucial success element of this project).
Since Vocational school Pozega sees great interest in development of this
project, in order to preserve the construction occupation and to provide
more and better jobs to their students, it will secure all the technical, as well as
human resources for the initiation of this project.
4.2.1. PREMISES AND LAYOUT
While the Home Improvement Centre received a strong support by the
regional construction companies associates of Vocational school, as
expressed in the survey interviews, they also urged caution, recommending
that the Centre dedicates necessary edifice in realistic dimensions and
connected to the expressed level of local needs.
In order to have local ownership of the building, which contributes to the
sustainability of the project, the Vocational school Pozega has agreed to
consign its premises (that need to be reconstructed) above the existing
construction, wall-painting and carpentry workshops and labs for this purpose.
The specific location is excellent for such a purpose, since it is the position in
the middle of high-school educational complex centre, only 3km from the
Town's centre, but in the quiet and easily approachable place (easy for
finding and for parking).
During the first half of 2011, the architects have proposed a draft of the
reconstruction of the „old attic“ above the construction department
workshops. It is an edifice of total surface of 472,48 m2, out of which 218,80
m2 are classrooms, 74,56 m2 are cabinet offices, and the rest are staff-room
(lounge), toilets, and hall.
The first concept of the draft had in mind only the narrow school purposes
(classrooms and staff cabinets), without expansion to other fields of
community influence. However, previously described problems in the sector
have asked for a strategical turn in sense of assisting the construction sector in
the region, so that VET construction school could maintain its economic
23
justification for its work, and that students could more easily find a way to
employment in the sector.
EXISTING
GROUND FLOOR
1 Carpentry workshop m2 193,78
2 Office m2 8,01
3 Hall m2 49,35
4 Entrance hall m2 5,7
5 Toilet m2 5,54
6 Depository m2 1,9
7 Masonry workshop m2 139,84
8 Office m2 6,11
9 Wall-painting workshop m2 56,4
TOTAL: 466,63
NEW:
RECONSTRUCTION OF GROUND FLOOR
3 Hall m2 27,73
4 Entrance hall m2 10,6
5 Portal m2 4,98
6 Depository m2 4,78
10 Toilet m2 8,46
11 Toilet m2 10,27
TOTAL: 66,82
NEW:
1ST FLOOR
1 Hall and stairway m2 129,28
2 Toilet m2 10,69
3 Classroom1 m2 42,96
4 Cabinet office m2 32,7
5 CONFERENCE ROOM (ex:Classroom2)
m2 74,25
6 CLASSROOM (ex:Cabinet office)
m2 41,86
7 Classroom3 m2 44,72
8 CABINET OFFICE (ex:Classroom4)
m2 56,87
9 ROUND TABLE ROOM (ex:Staff-room lounge)
m2 39,15
TOTAL: 472,48
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There will be 2 offices (cabinets) for expert services, 3 classrooms for traditional
educational programs of the sector (smaller groups), 1 conference room (50
persons), 1 round-table room (18 persons seating) and necessary sanitary or
communication space (halls, entrance port, presentation and exhibition
area). Since most of the training that will take place in this facility revolves
around the construction industry, there is a need for a larger open space that
allows for large samples to be moved in and out as needed. Classrooms will
be specialized for different areas of construction (1- CONSTRUCTION PHYSICS
with presented materials and equipment for saving thermal energy and
calculation of heat insulation coefficients; 2- BUILDING CONSTRUCTIONS
related to construction structures of buildings, with sectional views; 3- HOME
INSTALLATIONS, including electrical, plumbing, heating, ventilation and other)
with available LAB EQUIPMENT (chemistry, physics) for easier demonstration.
4.2.2. EQUIPMENT AND RESOURCES
Office furniture, video conferencing and other capital expenditure, such as
new computers and software are required. This will present an additional start-
up cost of Home Improvement Centre. Detailed list of furniture and
equipment items is presented in the Cost-benefit analysis financial
presentation. Equipment for energy audit is presented on next page.
The entire building must have secure broadband wireless access to Internet.
Portability will be the key to maximizing the use of equipment and taking
advantage of the flexible space the building offers. Consequently, all or most
of the computing should be via notebook computers that may be moved
from space on carts. Likewise, most of the desks, chairs, etc. (in classrooms)
should be stackable on portable carts to accommodate easy setup. Two-
way audio and video for conferencing and instruction can be provided with
portable systems. To the extent possible testing equipment, engineering
simulation stations, and other lab equipment should be on wheeled
workspace so they may be moved from space to space as needed.
Centre will have relevant software programs related to construction works,
preferably for provision of 3D simulations. Special equipment for energy audit
will also be procured. The detailed presentation of this equipment is visible on
next page.
In order to enable efficient work, it will be necessary for the Home
Improvement Centre to purchase a simple vehicle, for the field work of the
Centre's staff.
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1. Blower door. They help evaluations and aid diagnostic work. While the
common thermal bypasses are well known, a blower door can starkly show
the extent and size of air leakage problems.
2. Infrared camera Helpful for locating air leakage, moisture issue, thermal
bridging, or insulation irregularities that can lead to poor thermal
performance. Useful in visually demonstrating building problems to
homeowners.
3. Digital pressure and flow gauge. It is integral to blower-door testing but is also very useful on
its own. Zone diagnostics (poking air tubes into rooms and framing cavities) is very
informative. Pressure gauges can more finely detail the heat loss and air leak pathways. A
pressure gauge is also used for flue gas pressure testing and depressurization testing of
the combustion air zone.
4. Gas leak detector. For natural gas and propane heating systems.
5. Carbon monoxide detector. Carbon monoxide levels need to be monitored during an
audit. The heating system is checked with the combustion analyzer and this monitor tracks
atmospheric CO in the house throughout the audit.
6. Combustion analyzer. The combustion analyzer tests the efficiency of heating and hot water
systems. It can test flue gases for O2, CO2, heating system efficiency and carbon monoxide. It
can also double as a CO detector.
7. LED flashlight.
8. Digital camera.
9. Longer heavy-duty extension cord.
10. Tape measure.
11. Cordless drill. Many times the heating system exhaust pipe doesn’t have an access hole
drilled yet for the combustion analyzer probe. A drill is also needed for checking inside a
wall cavity.
12. Telescoping ladder. Attic access hatches are often tucked away and hard to reach. A
full ladder might not fit in an awkward closet. A heavy-duty telescoping ladder will make
snaking through a clothes closet to the attic hatch that much easier.
13. Moisture meter. Hygro psychrometer allows to quickly read several moisture measures,
including relative humidity. While no substitute for year round metered data and
observation, it is incredibly useful for gaining a sense of the moisture levels in a
building.
14. Fiber-optic borescope. Borescope allows looking inside wall cavities, sealed
crawlspaces, duct work. Useful for figuring out what’s happening in the building
shell.
15. Pin-type wood moisture meter. This device is very useful for testing sill plates or
other structural elements you suspect may have moisture issues.
16. Pinless moisture meter. When testing moisture in finish wood, trim, or other surfaces.
17. Non-contact voltage detector. Testing whether they are live is important as insulating
near or over live knob and tube is a potential fire hazard.
18. Laser tape measure.
19. Distance measuring wheel.
20. Wizard Stick smoke creator. Useful for tracking air flows when the blower
door is running. It creates a pretty arresting visual when the smoke is sucked
through a crack no one suspected was a problem.
21. Hat with LED light.
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4.2.3. SPECIALISED FEATURES
Home Improvement sector covers a wide area of very different segments, but
all related to improvement of living and resident conditions. Trends put focus
on living in harmonization with the nature, self-sufficiency in terms of energy,
simplicity of maintenance, minimalism of refurbishment, and similar … all for
the purpose of „freeing“ time and money for greater quality of life. This is why
Home Improvement Centre will make an effort to become a reliable advisory
institution, a starting point for all home improvement related projects, where
investors come and ask for free advice and consultancy. Some specific
services, that require greater time and engagement of additional resources,
will be charged at competitive prices.
Home Improvement Centre's staff will be trained and educated to provide
relevant information and services in matters of following issues:
RENEWABLE ENERGY – working together with investors in order to define
optimal solutions that help save and earn money, through application of
latest tools, technology and analytics. Clients could receive set of
deliverables, in form of documents, plans, drawings. After initial in-person
consultation, and development of drawings, 3D (4D) walk through
presentations can be provided. Contacts with regional contractors.
HOME REPAIR AND MAINTENANCE – a list of local providers of home repair
and maintenance services will be provided. Consultation on solutions.
USING NEW MATERIALS AND METHODS IN CONSTRUCTION - having excellent
communication with suppliers and producers of available new materials in
construction sector, enables regular presentations and trainings of using such
novelties. Providers offer these educations without charge for participants.
INTERIOR DESIGN & OPTIMAL ORGANIZATION OF SPACE – providing samples of
colour schemes, or furniture online shopping examples, Home Improvement
Centre staff can provide floor plan with furniture layout to help investors to use
their homes in the optimal way (functionally). Having catalogues of suppliers,
the Centre's staff will suggest accessories, light solutions and other tips for
modern interior design and organization.
3D VISUALIZATION OF SPACE – using high-tech software solutions (CAD)
RENOVATION OF FURNITURE AND EQUIPMENT – having carpentry workshop,
and experts in furniture production, clients will be provided with relevant
advice on how to reuse the existing furniture items, hence be environmentally
savvy.
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4.2.4. ENERGY EFFICIENCY SPECIALIZATION
Energy use in buildings accounts for over a third of total energy requirements
and offers the largest single potential for energy efficiency (excluding the
industry supply). Since Croatia is joining the European Union, a Directive on
the Energy Performance of buildings will have to be respected, meaning that
some energy standards will have to be adopted. Furthermore, building
owners will have to label the information on the energy consumption of the
building (energy quality)1. Also, when selling or renting a building, this label
must be available. It is an instrument of price differentiation, since high
energetic quality means lower costs for heating or cooling.
Investments to energy efficient living are definitely expected in the future
period in Croatia, since huge potential lies in this field. Energy audit programs
must precede these investments, and these services are targeted to all end-
users.
HOME IMPROVEMENT CENTRE in the field of energy efficiency will act as non-
profit energy consultant. The expert staff, together with the cooperatives and
outsourced associates, will approach individually to every project, and help
the investor (owner or other) to determine how to make his home or business
premises more efficient and to close the financial construction. VET school
teachers will undergo the certification for energy audit and efficiency and will
work together with the client. The priority will be to become the investor's
advocate throughout the process in order that he gets the best deal at the
highest standard of quality.
Energy efficiency is a complex issue that concerns few things in isolation. Air
leakage in the attic, level of insulation in walls and ceiling, size of heating or
cooling appliances, etc. all influence the level of energetic quality. This is why
a „whole house“ approach is necessary that views all parts of one home as a
connected system.
PROCEDURE:
STEP1 – contacting Home Improvement Centre through website or by phone.
Centre's representative will explain how the investor can access subsidies and
financing to upgrade his home, and will offer to conduct a low-cost energy
consultation to get the process started. They recommend a package of
retrofit measures that maximizes savings for the lowest cost, while ensuring
there are no health or safety hazards.
1 So far, only buildings larger than 1000m2 are included in the directive.
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STEP2 – connecting the investors with local energy contractor to conduct a
complete home performance assessment. They provide him with a clean,
understandable plan to improve home's efficiency and calculate the
potential energy savings. Full energy assessment should include blower door
test (measuring leaking of home, infiltration, exfiltration), building envelope
inspection (evaluation of windows and doors, insulation check, thermal
infrared imaging), HVAC inspection (HVAC – heating, ventilation, air
conditioning), appliance and lighting evaluation (cooking appliances, light
fixtures, proposal for more efficient lighting), health and safety testing
(ventilation, checking for mould, carbon monoxide, asbestos, …).
STEP3 – Client's home undergoes an energy efficiency retrofit, meaning the
life in a healthier, more comfortable and less expensive home. Home
Improvement Centre staff follows the investor during his investment
procedure, documents it and (with permission) displays the proof of home
improvement initiatives online.
On the web portal of Home Improvement Centre, the staff will develop a
simple online tool for calculation of potential energy savings in homes. Giving
some basic information about their home, the investor gets the indicative
guidelines about the results of their investments and results that can be
achieved.
Illustration:
Illustration:
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4.3. HOME IMPROVEMENT REFFERAL AND RESOURCE
NETWORK CENTRE BUSINESS MODEL
WHY? The project here presented was developed to address the most recent
challenges in the regional construction sector, through initiative for sectorial
guild creation. Focus is shifting from construction of new buildings to
maintaining and repairing them. Thus construction companies have to
change in a way that they not only offer basic construction services but
rather a whole life-cycle package, including maintenance. This also should
include data management on property, and being able to react to eventual
needs
Another issue related to regional construction sector is the fact that the
average age of construction workers is high and that the sector does not
have a very glamorous image. Recruitment is difficult. Few students study
building and construction and dropout rates are high. Furthermore the
mismatch between what students learn at VET schools and real life is a
problem.
Guild of regional contractors was identified as a much-needed collaborative
synergy between regional construction SMEs, organized in a less formal way,
as a series of projects that develop and implement the tools and methods
necessary for sectorial development, is what has been imagined. More
specifically, work on support to regional construction SMEs and their clients,
through Home Improvement Centre business model.
HOME IMPROVEMENT CENTRE, as referral and resource network centre leaned
on the work of Slavonia Construction Guild, is dedicated to unlocking of
economic potential of Pozesko-slavonska county (and wider) construction
sector, through support to entrepreneurs and small business formation.
Home Improvement Centre works focus to all entrepreneurs connected to the
PROPERTY & HOME related activities, but primarily contractors in construction,
helping them navigate the difficulties of running and advancing a small
construction business. Centre's staff in their work use innovative approach in
counselling and business assistance.
Home Improvement Centre raises from the unique partnership composed of
educational institutions and economic developers (companies), as well as
regional and national agencies (Chambers).
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GOVERNANCE – After reviewing several governance structures for similar type
of facilities, some potential models were researched in detail. Based on
consultations with project partners, and future members of Slavonia
Construction Guild that the Centre will likely have several funding sources, the
best governance model would be to establish a separate department within
the existing vocational school (public institution).
Home Improvement Centre, as part of the Vocational school, will not have
separate management, and will be supervised by the School Board.
Slavonia Construction Guild, on the other hand, will constitute a 3-member
Board out of 2 representatives of construction SMEs and one representative of
project partners. The Board will have the authority to decide on the work of
Slavonia Construction Guild and to recommend the features of activities of its
Home Improvement Centre (except the disposition of the building premises of
the Centre that remain under the school management)2. All major decisions
will have to be confirmed by the Guild's Assembly (brought by the majority of
all participating members of the Guild, on monthly meetings). The Board will
observe the work of the Centre's employees and give recommendations on
how to improve their work. The meetings of the Board must take place at
least once in three months. It is essential that construction entrepreneurs
remain on the Board to achieve local leadership and ownership. Keeping the
management simple and the Board small and functional is important. The
Board should meet on quarterly basis (minimum).
In its work, the Centre must act individually, in order to be less restricted in its
approach to develop partnerships with multiple agencies. By including
different agencies, institutes or development centres, Home Improvement
Centre will be in position to act in collaborative fashion towards the support to
regional construction sector.
Home Improvement Centre's staff will have responsibility of reporting twice a
year to the School Board and to the Board of Slavonia Construction Guild.
2 Home Improvement Centre is an institution defined by its activities and recognition in the
community, rather than a building or a formal bureaucratic body.
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4.4. KEY STAFF POSITIONS
The key position in the Centre will be 2 members of staff, constantly at
disposal to Slavonia Construction Guild members and to clients-investors.
The special type of institution and distinctive regional circumstances in which
this project is developed has imposed a particular organisational scheme that
encompasses all the competitive advantages offered by the VET construction
school.
The first Home Improvement Centre employee will be the BUSINESS
CONSULTANT, who will need to provide overall management and guidance
for the organisation in addition to construction business development.
Estimated salary would be 1100 EUR monthly (approximately 2000 EUR
including benefits and travel). Business consultant will specialise in issues of
land registry (legality of buildings), work protection, accounting, bookkeeping
and tax regime of small construction companies, public procurement
elements, preparation of procurement documentation, waste disposal
regulations, and other administrative and legal elements important to
construction business. This will be a person employed externally over open call
for job vacancy. The required professional experience of min 10 years.
Education in economy or law.
The second Home Improvement Centre employee will be a CONSTRUCTION
ENGINEER, a representative of VET school Construction department. This will
be a person available at all times to investors and clients, providing them with
his/her advice and consultation regarding the choice of optimal solutions in
home improvement or building. However, this will be an employee of VET
school (teacher) and will be reassigned from the group of 6 construction
engineers in school. All of these 6 engineers will occasionally work as
consultants in Home Improvement Centre, depending on their schedule in
school. In the Centre at all times will be one person present (8h per day), but
working in shifts. This way the Centre will be in position to provide the expertise
of all employed school construction experts (engineers), and not be
burdened by additional staff costs. Within their regular work hours, the school
staff has available working hours for additional tasks, and engagement in
Home Improvement Centre will be one of them.
In the fifth year of work of Home Improvement Centre, this Study envisages
the employment of ELECTRICAL ENGINEER with focus on issues of energy
efficient buildings, passive houses, energy saving and renewable energy
sources for individual small investors.
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5. SERVICES
Home Improvement Centre is established in order to serve regional
construction companies in their attempt of improving their businesses,
increasing level of income and profit, and developing new demand on the
regional market. Always having that in mind, all the services provided in the
Centre will serve these objectives. The services should be offered free of
charge or at minimal price that enables sustainability of the Centre (covering
only operative costs of the Centre).
Acting as referential point of all Slavonia Construction Guild members, the
Centre will be their representative institution. Its mission is to empower local
builders and construction professionals in the region, who have the reputation
for good work at a fair price.
Home Improvement Centre is also an institution open for public. It should
create a new and smart demand for new services related to construction
investments. Local population is facing a low living standard and small
average wages. This is even the reason more why their properties need
investments into energy efficient home improvement, or even into renewable
energy home-based projects.
Project partners have identified that sometimes investments are not limited
only by the available resources and funding, but also with the lack of relevant
information (about loans, new efficient methods, materials). Services of the
Home Improvement Centre are directed into assisting the entire construction
sector in the region.
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5.1. DELIVERY OF SERVICES TO CONSTRUCTION SMEs
Having in mind that most of Slavonia Construction Guild members work by
referral only and do not advertise one of the services of the Home
Improvement Centre will be to connect, promote and brand each member.
Strong referral base is not built over night. It takes a solid track record over a
long period of time to earn the trust of customers. Reputation depends upon
the quality and cost of the work. This is why the Guild shall offer, through the
Centre's platform for promotion, a set of free services for promoting the work
and businesses in the Guild. Without having any preferences, all construction
SMEs in the Guild will be offered to be promoted the best possible way over
the Centre.
NETWORKING – PROMOTION – BRANDING - EXHIBITION HALL
Regional construction SMEs, in general, do not invest anything in their own
promotion. Using „word-of-mouth“ principle, they wait for clients to come and
rely on the fact that previous clients will provide contact information (mobile
phone number) to new clients. This is the model of promotion that 90% of
regional construction SMEs use. Establishing of Slavonia Construction Guild
and its operative body Home Improvement Centre can change this, in a
systematic and sustainable way.
Centre's staff will create a detailed regional construction SMEs Directory
(database) on WEB PORTAL, where all members of Guild (but also other
companies) will be presented, with all contact details and description of
specialisation. Guild members will further on be presented even with
referential works (photo galleries). Graphical presentation will clearly show by
location available contractors and their specialization. According to
preferences, it will be possible to present with more information the individual
contractor (owner, prices, staff expertise, etc.).
Home Improvement Centre will provide space for permanent exhibition of
quality works of regional construction SMEs, as a form of systematic and
attractive tradeshow presentation. Rarely regional construction SMEs have
time or money to participate in the crafts tradeshow, or they do not see the
immediate interest in this. Centre's available space (wide hall) will attract
visitors and show good example of works in home improvement projects.
CORPORATE TRAINING – EDUCATION – LECTURES - PREQUALIFICATIONS
Skilled and adaptable labour is needed in order to develop the SME sector.
This is achieved only by dedication to life-long learning in all segments of life. It
37
is necessary to support prequalification and training programs in the small
economy, since inadequate offer of skills in the labour market prevents new
jobs creation and long-term development of the sector. How this can be
done3?
By supporting the modernisation of business activities through
education of entrepreneurs
By supporting the improvement of vocational competencies of
entrepreneurs and their employees through engagement into different
forms of informal education (seminars, courses, etc.)
By provision of expert support to key aspects of business management,
like innovation, quality management and marketing
By developing new models of approach and adoption of „best-
practice“ management and promotion of success stories in order to
spread the innovative management in SME sector
By supporting the general awareness of the necessity for education
and training, and greater adoption of life-long learning principle.
Some sectorial educational topics that could be organised and conducted in
forms of several days long seminars (or shorter lectures) are (according to the
input made in the planning phase by construction entrepreneurs themselves):
-Advanced Entrepreneurship in Crafts
-Brazing Approval
-Chemical Safety Awareness
-Confined Space Operations and Training
-Construction Informatics and Management
-Disability Access Application
-Emergency Lighting Systems
-Entry Level to Refrigeration & Air Conditioning
-F-Gas & ODS Refrigerant Handling Theory and Practical Workshops
-Fire Detection & Alarm Systems
-Forklift Training
-Introduction to Legislation & Standards in Maintenance, Servicing & -
Construction Safety & Activities
-Managing Safety & Health in the Workplace
-Ladder Safety
-Legislation & Standards in Maintenance, Servicing & Construction Safety &
Activities - Managing Safely for Construction Managers
-Manual Handling Instructor
-Mobile Elevated and Access Working Platform Training
-Passive House Design
3 From the national Strategy of Entrepreneurship Development 2020, adopted in May 2013.
38
-Project Management Professional
-Portable Fire Extinguisher Maintenance & Servicing
-Preventative Maintenance
-Solid Fuel Awareness & Installation
-Wiring Diagrams.
More general topics, but still concerning running and improving the business
could include the following topics:
-Advanced Entrepreneurship in Crafts
-Entrepreneurial Training Program- Are You Ready to Start a Small Business?
-Building the Foundation for Your New Business
-Business Basics
-Start Smart
-Crafting A Business Plan
-Strategic Planning and Execution
-Choosing A Legal Structure
-Buying A Business
-Entrepreneurial Training- Business Plan, Legal Issues & Info Resources; Financial
Management
-Finding Money To Start A Business
-Creating Financial Projections
-The Entrepreneurial Strategies
-Hiring and Managing Employees
-Accounting
-Money Smart: Record Keeping for a Small Business
-Understanding Advertising and Promotions
-Creating Buzz: Small Business Marketing
-Market Insight and Research
-Pricing Strategy and Tactics
-Competing with the Big Boys
-Windows, Signs, and Visual Displays
-YouTube Marketing for Small Business
-Online Tools to Help You Work Smarter - Not Harder
-DIY Marketing Tips
-How to Be A State Contractor.
FOCUS GROUPS – BRUNCH MEETINGS – CONVENTION CENTRE
RENTING PREMISES - Project partners predict solid demand for usage of Home
Improvement Centre in the future, not only for Vocational school Pozega's
school activities and Slavonia Construction Guild activities (networking and
advisory), but also for other activities of the same kind („soft“ activities of
counselling, education and know-how sharing).
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Town of Pozega does not have many places where events of more than 50
participants can take place4. Home Improvement Centre's advantage in this
case lies in its location and accessibility (closeness to educational institutions,
available even in afternoon hours, etc.). Also, through cooperation with the
Students' Dormitory where participants in educational activities could reside,
the overall atmosphere of this Centre is the one of „campus“ that stimulates
the knowledge apprehension.
Hence, Home Improvement Centre could expect the demand for usage of its
premises (conference room, in particular), by other cooperating institutions for
minimum 4 times a year.
One of the most important elements of the project is networking element that
connects all interested construction companies in the region, in a way that
enables them better exchange of information and joint action in matters of
common interest. The model of frequent and regular gathering that will be
used within this project is already confirmed in many other sectorial networks
in EU – brunch meetings. Brunch is concept of morning meetings related to
some specific topic with distinguished spokespersons, usually followed with
light breakfast. The overall casual atmosphere creates an environment where
all attitudes are welcome and where opinions can be expressed without
prejudices.
BRUNCH MEETINGS could be held each 2nd Friday (or Saturday), in the
premises of Home Improvement Centre (round-table room).
Slavonia Construction Guild will be established without the obligation of
payment of membership fee for the first year. However, it is expected that
after the first year the Guild proposes a yearly membership payment that will
be symbolic in regard to quality services provided by the Home Improvement
Centre staff.
The second model of financial contribution to the Guild's activities could be
through payment of each individual service provided. However, considering
that the price of each service would be in total significantly more expensive
than a „package price“ the membership fee would be a smarter and more
rational solution.
4 Besides large sports halls and hotel's restaurant areas, that are completely inadequate for
such events, only Croatian Chamber of Commerce and Chamber of Craft dispose with
lecturing space for more than 50 participants.
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5.2. SERVICES TO INVESTORS
Regional investments in property can be supported by provision of relevant
and timely information. Several services of the Centre are described here.
ONLINE SERVICE:
Illustration: - ASK CONSTRUCTION EXPERT –
Through web portal of Home Improvement
Centre clients and contractors are in position to
ask direct and specific questions regarding their
property or investment. Experts that will regularly
answer to questions will be all members of the
VET school Construction Department.
Depending on the type of the question, Home
Improvement Centre will seek for appropriate
answers from authority institutions, all with
purpose of developing the same-practice
principle and exchange of valuable
experience among regions. The service of
answering to relevant questions will be offered
without charge to clients.
- INTERIOR & EXTERIOR DESIGN SOLUTIONS –
As a promotional tool, on the web site, one client's request each month will
be chosen to design a drawing on interior design solutions, without charge.
According to availability, service of drafting the interior or exterior design
solutions to investors will be provided at competitive price.
- COUNCELLING ON FUNDING OPTIONS –
Investors are not informed enough about the possible financing options, not
only about the financial institutions, but also about relevant subsidies or
incentives (grants) that exist in the market. Centre's staff must have all related
information on one place, or be familiar where such information can be
found.
- LECTURES –
Open to public lectures will be regularly provided connected to property
related topics, in wide range of segments (i.e. legal status of property,
building permit issuing procedure, solar panels in homes, energy saving, etc.)
41
6. FINANCIAL PLAN
In order to make a Home Improvement Centre a reality, project partners
have developed a timetable, with span of 2 years (related to construction)
and up to 5 years (related to its full functionality and sustainability).
Stakeholders must have patience, and things must be initiated with a defined
schedule and proportioning. The Centre should develop in reasonable
phases, as a process.
According to the operative action plan of establishing the Home
Improvement Centre, and based on the information from the technical
design, a detailed financial plan (estimates) was developed. The exact
figures and prices can only be defined after the conduct of tendering
procedures for procurement of works or equipment.
6.1. ESTIMATES OF CAPITAL COSTS
An estimate of costs to build and equip the building was made during the
planning phase of the project. The building cost is based on the Bill of
Quantities made by the architectural design company KID d.o.o. that has
drafted the building design. Costs of necessary equipment were defined
through partnership work, during the planning phase of the project.
- EUR 399.561 for building, total of 472,48 m2 of facility
- EUR 47.100 for solar energy panels (30kWh)
- EUR 199.950 for equipment including:
o Hardware for building-wide wireless network
o Notebook computers
o Portable two-way audio / video equipment
o White boards, smart boards
o Exhibition furniture and equipment
o Energy audit equipment
o Portable projection systems
o Stackable chairs, desks, tables, etc.
o Mobile workbenches
o Office & conference room furniture
o Lift platform for access of disabled
o Soup kitchen equipment
o Sanitary equipment.
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6.2. ESTIMATES OF ANNUAL OPERATING COSTS
Operating costs (including maintenance) are those post-construction costs
necessary to ensure or verify the continued effectiveness of a remedial
action. These costs are estimated on an annual basis.
Annual operating costs include all labour, equipment, material and personal
service costs that make the Centre's work possible.
6.2.1. HUMAN RESOURCES
BUSINESS CONSULTANT, a newly employed person: besides provision of
advisory services and consultancy to construction companies, the Consultant
will conduct management and administration related trainings and seminars,
but also supervise and take care of the facility, be a marketer of the facility,
be a broker for education, training, services, work with Board to secure
funding. During the set up phase of the project, he/she will also act as project
manager. Working for 50% of working hours, his/her estimated year wage is
12500 EUR.
CONSTRUCTION ENGINEER will be a person (persons) employed in Vocational
school Pozega, who are in position to provide specialized service to
construction companies within their regular working hours (additional work),
and this cost does not add on Home Improvement Centre's operative costs.
Will work for total of 12 hours/week, in a way that each VET school teacher
dedicates every week 2 hours (within their additional tasks working hours) to
working in Home Improvement Centre.
ELECTRICAL ENGINEER will be a person employed in Home Improvement
Centre, in the fifth year of the Centre's work to provide specialized advisory
services to investors and contractors related to energy efficient investments,
but also to renewable sources of energy that can replace the existing fossil oil
based energy. Focusing on achievement of self-sustainable homes, this expert
will work for total of 10 hours/week, being every day at disposal to client at
the same working hours.
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6.2.2. UTILITY COSTS
Concierge service, maintenance and janitorial service, as well as 27000 EUR
per year for overhead costs (utilities, wireless & telecommunication access,
other administrative costs) are covered by the funding of Ministry of
education, since the building remains for the VET school purposes (due to the
fact that during the vacant hours, the school will use classrooms and premises
for regular school programs). Since the work of Home Improvement Centre
mostly includes the intellectual services and counselling, it is not expected
that it generates large utility costs. There are no large machines or equipment
to be used within this project, so energy spending will be relatively small.
6.2.3. TRANSPORTATION AND STUDY VISIT COSTS
As important element of the project, in the way of providing service to
construction companies and clients, a vehicle must be provided to the
Centre's staff and their work at field. Considering that Home Improvement
Centre staff will operate on field, and that they must frequently travel to other
institutions (Zagreb, Slavonski Brod, Osijek, abroad) in order to develop long-
lasting relations with other Centres of excellence, and to find adequate
lecturers and experts, the project team finds purchase of the Centre's vehicle
more efficient and more rational model of transport, than using private cars
for the institution's work.
The project also envisages organisation and conduct of different
construction-related study visits to regions of good examples and best
practice. Study visits will be covered by the fees of participants, in
accordance to not-for-profit model of work, and organised with taking into
consideration the professional purpose of the visit (simple and modest
accommodation, staying at the host institutions, etc.).
6.2.4. OTHER SERVICES COSTS
Construction works are a complex activity, frequently connected to legal and
general economic issues. In order to be relevant in their consultancy work,
and to cover the complexity of this sector, Home Improvement Centre will
have to occasionally consult legal and other experts. These services will be
used according to specific requirements, and will be paid based on the
actual number of consultancy hours provided.
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6.3. PROJECTED INCOME AND PROFIT/LOSS
Income of Home Improvement Centre is derived from the set of services
described in the 5th chapter, offered and provided for the regional
construction companies and investors (clients, public).
The project anticipates the establishment of Slavonia Construction Guild
organisation whose members will be primarily supported by the Centre's
service, and that will be interested to participate on regular basis in its
financial support. Also, other more specific services will be provided for the
general population in Pozesko-slavonska county, in terms of construction and
energy efficiency, some to be offered without charge, other at competitive
or symbolic price.
The Cost-benefit analysis has presented details of income generation, where
assumptions are that the Centre will offer trainings, lectures, promotion,
counselling, and other services at low price, attractive for the regional
companies and investors to use. Also, the Centre will generate income from
production of electrical energy (and selling it to the electrical network), that
makes an important element for sustainability and potential for improvement
of Centre's activities and investing into new services and marketing products.
NETWORKING – monthly brunch meetings, round table meetings, focus
groups, lectures of relevant speakers – these activities will be offered to
construction SMEs, at affordable prices. Total of 20 such events
(minimum) per year will be offered at price of 2000kn (as subscription),
or 100kn/event.
PROMOTION – through participation in Slavonia Construction Guild, all
members will be strongly promoted within the promotional activities of
the Home Improvement Centre. The staff of the Centre will produce
promotional material (leaflets, booklets, brochures, business cards) of
the Guild's members, and will work on their continuous advertisement
and recommendation. Online promotion on the Centre's homepage
will be possible. Home Improvement Centre will inform clients about the
available contractors in the region, and provide contact. The price of
complete package of promotion for each construction company will
be 1000kn/year (simple package in detail defined by the Centre staff).
BRANDING – Home Improvement Centre will develop its own brand
during time, focusing on the clients' trust, quality of service and
relevance of its programs. The CENTRE must become recognizable as
Construction Extension (Advisory) service. The interested construction
45
SMEs will be offered to obtain the Home Improvement Centre's SIGN
(logo, mark) as a proof of their engagement in the Centre's activities
(showing that the company is investing in its growth and education).
Joining the Centre's branded group will be offered to companies at
symbolic price of 200kn/year.
EXHIBITION – Home Improvement Centre's premises will represent a
constant exhibition space (tradeshow). The interested construction
SMEs will have the option to present their referential work in form of
section views (separates of walls, windows, etc.), large photos, ppt
presentations, or similar. This option will be offered to companies at the
price of 500kn/exhibition (i.e. 10 items of presentation, 30 days long
presentation).
CORPORATE TRAINING – EDUCATION – LECTURES – PREQUALIFICATIONS –
specialized trainings, educations, lectures and other forms of transfer
the knowledge and skills will be regularly organised and conducted in
the Home Improvement Centre. Focus on competency based training
(operating with equipment or material, in safe and effective manner)
with primary role to ensure that participant has the skill to undertake a
specific operation. Trainings are centred on demonstrations and
application, while lectures remain theory based. Participation on each
individual educational event will be offered at the least possible price
(to cover the expense of the event), starting from the FREE courses or
lectures, up to several thousands of kunas (for 40h trainings).
SPECIALIZED WINTER SCHOOL FOR CONSTRUCTION SMEs – in
cooperation with the Students' Dormitory, every year a Winter school
(course) for specialized training for construction SMEs will be offered.
Duration of minimum 40 hours, and possibility of cheap and quality
accommodation in the Dormitory could attract dozens of participants,
from entire Croatia. Quality of program will depend on the expert
lecturers, and program curricula. The package price without
accommodation could be around 2500kn, while the package with
accommodation and meals included will be 5000kn.
CONVENTION CENTRE – a small portion of the revenue for the Centre
will come from renting its spaces and facilities to outside groups and
businesses. Projections are very conservative because the priority will be
for Slavonia Construction Guild members and partner institutions to use
the Centre as much as possible to provide courses, stimulate regional
business development and market local services.
46
ASK CONSTRUCTION EXPERT – these services will be offered as a
promotional tool, primarily. One such service will be offered free of
charge each month, online. Other services, if they will ask for more time
and resource consuming activities, will be offered at competitive price
(80kn/hour of consultancy work).
INTERIOR & EXTERIOR DESIGN SOLUTIONS – as another promotional tool,
attracting the attention of investors on Home Improvement Centre's
work and development of clients' trust, it will be offered (one every
three months) free of charge „design makeover“ projects. If asked
more frequently, clients will be charged 500kn/design solution (3D).
ENERGY AUDIT – the project includes education and training of VET
school teachers in segment of energy efficiency and energy audit
servicing. These services will be offered to investors (and contractors) at
affordable price of 800-2000kn/audit. Since new legal regulations
demand that all properties receive certificate on energy quality, it can
be expected that demand for such services will grow exponentially
(min10 services in the first year, 20 in the second, with growth trend in
the following).
The alternative to the income presented in the Cost-benefit analysis is the
possibility that members of the Slavonia Construction Guild cover the
complete Operative costs of Home Improvement Centre and 1(one) expert
(business consultant) – 25.000kn/month5. This can be expected only if Guild
members recognize the direct benefit for their businesses and staff, and if they
can transfer the membership fee to the increase of their profit. Project
partners believe that their interest will be gradually built and sufficient only
after the 3rd year of the Centre's work, when quality of services and
consultancy becomes familiar and strongly branded in the region.
The financial viability of Home Improvement Centre must be achieved. The
educational and consultancy institution must at least operate at a break-
even level, in order to have long-term perspective.
5 20 members would have to pay monthly membership fee of 1.250kn.
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7. FEASIBILITY ASSESSMENT
The purpose of Home Improvement Centre is to shake up the status QUO, to
broaden access to education and business development opportunities, and
to ultimately stimulate the local economy and bring economic benefit to
population in Pozesko-slavonska county and wider.
The project aims to: stimulate new investments in property improvement and
new construction, triggers new business development related to construction
and energy efficient investments, and to increase employability of
construction experts and workers in the region. The ultimate goal of these
activities is to: bring more money into local communities (into region) through
increasing the number of people employed, and increase the internal
circulation of resources (money) to support a greater variety and scale of
local businesses.
Having in mind these ambitious goals of this project, it is clear that FEASIBILITY
could be hard to estimate. However, by using the CBA method, the figures
have shown the sustainability of the project, but with certain conditions. The
funding of capital investments must be in form of public support (Ministries, EU
funding or similar) without the obligation of return, or interest payments. Other
very important condition is to „let“ users (construction SMEs) have a strong
influence on the design and management of Home Improvement Centre's
work, through optimal models of governance.
The pace and scale of the growth for the Home Improvement Centre is very
difficult to predict. It will depend on the development and strength of
Slavonia Construction Guild, and the general development of regional
construction sector.
There is also a concern to what is called „chicken or the egg“ situation.
Should the educational/advisory institution be established first and then
attempt to attract employers and clients? Or there should be first the
demand for such an institution? Based on the demographics and character
of current population and economy, it is difficult to expect such demand,
considering that similar networking and informing institutions in the region do
not exist. Future clients will have to be informed and motivated to use the
offered services.
The research during this feasibility study development has shown several key
points that will have significant influence on the success of Home
Improvement Centre project:
48
Hiring a person familiar with issues of regional construction, but also with
secondary education and available funding of education, who has a
passion for this type of project, and who is willing to stick with
developing the project in early stages, even when things appear to be
difficult to carry through
Management of Vocational school Pozega, that remains the owner of
the building and equipment, must strongly support the initiative, having
in mind that success of this project will positively influence the image of
school, as well as probability of employment for high-school graduates
Support from regional or national institutions should not remain only
declarative, but in time grow into financial.
Sustainability of the project can be assured if following reasons are respected:
Continuous operation of Vocational school
Gradual improvement of the standards of VET school from basic level to
advanced one
Involved teaching personnel permanently employed by the school
Involved teaching personnel implements a long-term vocational
teaching programs (and life-long learning concept)
Slavonia Construction Guild members are involved in the establishment
and monitoring of the program, so it can be adjusted to suit their
changing requirements
Durability of equipment and furniture will last for minimum of 10 years
Renovation and upgrading of new building premises will last for at least
30 years.
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8. POSSIBLE SOURCES OF FINANCING
When possible sources of financing of Home Improvement Centre are
observed, the objectives of its operations are crucial.
Home Improvement Centre (as operative body of Slavonia Construction
Guild) will act as an enterprise-led support body dedicated to the promotion
and facilitation of enterprise training and workforce learning, as key elements
in sustainable regional competitiveness.
The aim of Home Improvement Centre (among other) is to increase
participation in enterprise training by firms to improve their competitiveness
and provide improved access for workers to skill's development. It should
continue to foster and support networked and partnership approach to the
provision of relevant training and expand and develop that approach by
supporting workforce retention / activation–related learning.
If these objectives and aims of the Centre's work are properly presented, it is
clear there are several other sources of financing present in Croatia that
could be used for the work of Home Improvement Centre. Ministry of
Entrepreneurship supports every year business-support institutions, as well as
VET schools that could apply for this funding. Town of Pozega and Pozesko-
slavonska county support their business-support institutions, according to the
current budgetary limitations and possibilities. VET schools that are project
partners, both generate substantial income from commercial activities
conducted in their workshops that could be partially used for financing of
Home Improvement Centre.
Income can also be generated from renting the conference room for
occasional public events, presentations, book promotions, etc. However, it is
estimated that the interest for this service will not be significant, so it is not
mentioned in the Cost-benefit analysis.
The presented income from the energy production of SOLAR PANELS is the
conservative version estimate of income, considering that the price of kWh in
Croatia is guaranteed at 2,7kn/kWh, and that in Pozega's area can be
expected that 30kW solar panels could produce around 30.000 kWh
annually.6
6 81.000 kn is the income level according to providers of solar panel energy plants. For the
purpose of Cost-benefit analysis, the level of income of 55.200 kn is planned.
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9. CONCLUSION & RECOMMENDATIONS
The major underlying question related to the presented project is „Is this
concept feasible?“ Our answer to this question is YES. However, all parties
must realize this is not an easy project and will require the coordinated effort
and support of all.
The concept is laudable one and the potential outcomes and benefits from
establishing Slavonia Construction Guild only. Home Improvement Centre is
certainly needed and would greatly aid the region. All of the stakeholders in
the area with whom we spoke or who answered surveys were excited about
participating in the project.
This is quite a unique project as it involves cooperative efforts among the
public institutions, private ventures, not-for-profit organizations and individuals.
A great deal of creativity will be needed in how to sustainably develop this
project to upgraded phase (next level), since „tight budgets“ at national or
regional level may have a definite impact on the ability to carry some
elements of the project.
The identified recommendations that would improve the implementation and
success of this project are:
- Much of the success of the Centre will depend on the homogeneity of
Slavonia Construction Guild and their genuine sense of ownership over
this Centre
- It is important that Centre has some early success stories to provide
momentum for future growth of programs and services. It is anticipated
that it will take several phases over a period of min 3-5 years for the
Centre to reach its full potential
- The staff of the Center would need to be identified early and brought
on board prior to construction to champion its mission and develop the
linkages to the region that will be necessary to ensure early successes
- The most important feature of the physical structure of the Center will
be its flexibility to adapt to needs as they are identified and change
over time.
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ANNEX 1
Construction SMEs in Pozesko-slavonska county
associates of Vocational school Pozega
1. Izvođač građevinskih radova "RAGUŢ ing. KREŠIMIR", Poţega, Zelena 24
2. ARMIRANJE I BETONIRANJE "ESTRICH", vl. Ţeljko Pranjić, Poţega, Zrinska 68
3. Građevinski obrt "FRITZ", vl. Zoran Marković, Kutjevo, T. Tomića 14
4. Moderna IVIĆ GRADNJA, vl. Ivo Ivić, Velika, Strossmayerova 32A
5. PRIVATNI PODUZETNIK " VINKO GRADNJA " vl. Vinko Adţaga, TRNOVAC 26 A
6. GRAĐEVINARSTVO MARKOVIĆ, vl. Pero Marković, Kutjevo, Tomislava Tomića 16
7. P. D. "GRADNJA", vl. Petar Draţetić, Brodski Drenovac 172
8. GRAĐEVINSKI OBRT "2M", vl. Marko Majstorović, Kutjevo, Vinkomir 27
9. Građevinski obrt LOVRIĆ, vl. Tihomir Lovrić, Migalovci 27
10. GRADITELJSTVO STEHLIK, vl. Ivica Stehlik, Resnik 41
11. Soboslikarski i ličilački radovi GATJAL, vl. Tomislav Gatjal, Dervišaga, Srpanjska 1
12. GRAĐEVINSKI OBRT " BEMBO", vl. Ivica Tadijal, POŢEGA, B. P. ŠUBIĆA 12
13. Soboslikar i ličilac "PERUZOVIĆ", vl. Josip Peruzović, Poţega, Vranduk 83
14. "BOJA" SOBOSLIKARSKI I LIĈILAĈKI RADOVI, vl. Damir Janeš, Poţega, Točak 9
15. SOBOSLIKARSKI I LIĈILAĈKI RADOVI "VALA", vl. Branko Vala, TEKIĆ 5
16. Obrt za soboslikarske i ličilačke radove "ŠPIRANEC", vl. Zlatko Špiranec, KUNOVCI 1C
17. SOBOSLIKAR I LIĈILAC "MARIO HORVAT", vl. Mario Horvat, Poţega, Dubrovačka 8
18. Soboslikarski i ličilački obrt COLOR KOVAĈEVIĆ, vl. Ivan Kovačević, Poţega, Ivana Mesnera 24
52
ANNEX 2
Construction SMEs in Pozesko-slavonska county
to be invited to join Slavonia Construction Guild
1. "Zidarska radnja Branko Sadilek", vl. Branko Sadilek, Kaptol, Vetovačka 17
2. Zidar "VINKO ĆOSIĆ",vl. Vinko Ćosić ,Golo Brdo 93, , Kaptol
3. Građevinski obrt "PAUK", vl. Ljubomir Marković, Kutjevo, Vinkomir bb
4. Obrtnička radnja "INTERIJERI-KREŠIĆ", vl. Nikica Krešić, Jakšić, S. Radića 38
5. Samostalna stolarska radnja "AŠENBRENER", Kutjevo, Bana Josipa Jelačića 24A
6. "PARKETARSKA RADNJA PAVELIĆ",vl. Ivica Pavelić, Pleternica, E. Podubskog 14
7. Zidarsko-fasaderska radnja "PETRANOVIĆ", vl. Dragan Petranović, Bzenica 17
8. Samostalni zidarski obrtnik "SAM-PROMET", vl. Josip Buturac, Grabarje, M. Gupca 50
9. Usluge građ. strojevima "JURĈAK ZVONIMIR", vl. Zvonimir Jurčak, Poţega, Industrijska bb
10. Građevinsko obrtnički radovi "ZOKA - Kaptol", vl. Zoran Zeba, Kaptol, Poţeška 50/b
11. Obrtnička radnja "LIMARIJA - PAŢIN", vl. Dalibor Paţin, Jakšić, S. Radića 47
12. "ROVOKOPAĈKE USLUGE", vl. Ivan Stipić, Blacko 46
13. "LIMARIJA JANOTA", vl. Stevo i Dejan Janota, Dervišaga, Zrinska 3
14. "ZIDARSKO FASADERSKA RADNJA", vl. Ţeljko Tomić, Golo Brdo 72
15. KERAMIKA JAMBREŠIĆ, vl. Berislav Jambrešić, Orljavac 59
16. GRADNJA, vl. Ivica Stjepić, Viškovci 1 e
17. Građevinski obrt "4M", vl. Ivan Malčić, Poţega, E. Kvaternika 193
18. "AG" GRADNJA, vl. Marina Abramović, Velika, Dr. F. Tuđmana 2 H
19. GRAĐEVINSKI OBRT - ZOVKO, vl. Mato Zovko, Stari Brestovac 93
20. "Z.D.S. ĈOLIĆ" - STROJNO ŢBUKANJE, vl. Stipo, Zdenko i Dragan Ĉolić, Stara Lipa 76
21. Strojno ţbukanje ANTIK, vl. Darko Janjiš, Vidovci, Svibanjska 8
22. Strojno ţbukanje BONUS, vl. Ivica Nikolić, Ivandol 17
23. ELEKTRO-GRADNJA, vl. Ivica Banoţić, Pleternica, Smrik 9
24. OBRT ISKOP " MARIJANOVIĆ ", vl. Frano Marijanović, Kaptol, Majstorska 1A
25. GRADNJA TROHA, vl. ANTUN TROHA, POŢEGA, A. ŠENOE 16
26. STROJNO ŢBUKANJE ZEBA, vl. Jozo Zeba, Straţeman 14
27. DELUX GRADNJA, vl. Dalibor Ĉokrlić, Biškupci 13
28. OBRT "GRADIS", vl. ŢELJKO EREIZ, NOVO SELO, HRVATSKIH DRAGOVOLJACA 106
29. OBRT FENIX, vl. Igor Ĉorković, Poţega, Kralja Krešimira 9A
30. BLIC interijeri, vl. Flamenko Senjak, Pleternica, Vinogradska 36
31. GRAĐEVINSKI OBRT "LUĈIĆ", vl. Stipo Lučić, Bekteţ 78
32. GRAĐEVINSKI OBRT "VRELA", vl. Josip Cvitković, Ciglenik 10
33. "PARKETI BRABEC", vl. Goran Brabec, Poţega, O. Kučere 19
34. GRAĐEVINSKI OBRT "ŠOP", vl. Ivica Šop, Grabarje, Stjepana Radića 68
35. KERAMIKA "BILOBRK", vl. Milan Bilobrk, Velika, Hrvatskih branitelja 19
36. OBRT STIPIĆ, vl. Ivica Stipić, Kaptol, Velička 7A
37. KERAMIKA "VIDOVIĆ", vl. Robert Vidović, POŢEGA, DR. F. TUĐMANA 6
38. GRAĐEVINSKI OBRT SOKOL, vl. Stipo Lovrenović, Vidovci, Radnička 5
53
39. M2 - GRADNJA, vl. Mijo Jozić i Mario Mrvelj, Gradac, S. Radića 132
40. STOLARIJA "SOKOLOVAC", vl. Ivica Valiček, POŢEGA, SV. JOSIPA 23
41. OBRT "PUŠKARIĆ", vl. Josip Puškarić, BUĈJE 48
42. LIĈILAĈKI OBRT "DUMANĈIĆ", vl. Vlado Dumančić, VIDOVCI, J. MUŢEVIĆA 18
43. OBRT STROJNE GLAZURE "ĈOKRLIĆ", vl. Milan Ĉokrlić, RADOVANCI 47
44. GRAĐEVINSKI OBRT "ZORAN I STIPO", vl. Stipo Davidović, DARANOVCI 39
45. OBRT ZA GEO-BUŠENJE, vl. Goran Šinko, GRADAC, A. STARĈEVIĆA 7
46. TOMAŠEVIĆ SUHA GRADNJA, vl. Stjepan Tomašević, POŢEGA, A. MIHANOVIĆA 4
47. SAMOSTALNI OBRT "PEIĆ", vl. Mario Peić, GRADAC, P. RADIĆA 23
48. USLUŢNI OBRT "ŠOKAC", vl. Tomislav Ruţička, GOLOBRDCI 23
49. INTERIJERI - ŠUNJO, vl. Vinko Šunjo, BRESNICA 11
50. GRAĐEVINSKI OBRT CRNKOVIĆ, vl. Robert Crnković, POŢEGA, VRANDUK 121
51. Završni radovi "FINIŠ", vl. Ante Anušić, CEROVAC 47
52. GRADNJA PAVIĆ, vl. Ivica Pavić, Busnovi 32, Brestovac
53. OBRT "HORVAT", vl. Nenad Horvat, Poţega, Pavla Radića 133
54. ALU I PVC PERKOVIĆ, vl. Hrvoje Perković, Poţega, Sv. Roka 14
55. Završni građevinski radovi "TAPET", vl. Miodrag Vukelić, ANTUNOVAC 1A
56. TRGOGRADNJA, vl. Damir Galić, BEKTEŢ 20
57. ALU-PVC BISTRICA, vl. Dario Bistrica, Poţega, B. Hanţekovića 8
58. Fasadni i štukaturski radovi "MARIO FASADE", vl. Marijan Galović, Pleternica, M. Gupca 94
59. OBRTNIĈKA RADNJA TONI, vl. Anto Milišić, KUTJEVO, S. RADIĆA 39
60. STOLARSKI OBRT KRALJEVIĆ, vl. Ivan Kraljević, Draga 46
61. LOVRENOVIĆ GRADNJA, vl. Jakov Lovrenović, Vidovci, Radnička 5
62. ĈATLA, obrt za pruţanje usluga u građevinarstvu, vl. Ţeljko Ĉatlaić, Poţega, Ive Ĉakalića 3
63. ŠITUM OBRTNIĈKA RADNJA, vl. Frano Šitum, Baruna Trenka 2, 34 340 Kutjevo,
64. INTERIJERI JELUŠIĆ, vl. Stipo Jelušić, TRNOVAC 2C
65. Usluge u građevini "PEĈENI", vl. Anto Zeba, KAPTOL, MAJSTORSKA 6
66. DŢAJA, obrt za građevinarstvo, vl. Kata Marković, Kutjevo, Kneza Trpimira 21
67. ANTUN, obrt za soboslikarske radove, vl. Antun Ĉakalić, Ĉešljakovci 66
68. KURAJA, obrt za usluge, vl. Miro Kuraja, Kuzmica 70C
69. GRADEKO, obrt za usluge, vl. Tihomir Radoš, Vesela 7
70. LOVRENOVIĆ INTERIJERI, obrt za usluge u građ. vl. Valentina Lovrenović, Vidovci, Radnička 5
71. SVITOK, obrt za građevinske usluge, vl. Ivan Svitok, Kutjevo, Ţupnika Mirka Messnera 43
72. INTERIJERI FD, obrt za usluge, vl. Dario Frantz, Poţega, Orljavska 44
73. HNATYŠYN, obrt za usluge, vl. Danijel Hnatyšyn, Vidovci, Josipa Muţevića 3
74. GRADNJA, vl. Antun Nenadović, Donja Obrijeţ, Donja Obrijeţ 81
75. Limarski obrt, vl. Nenad Stojaković, Lipik, Školska 12
76. Zidarsko-fasaderska radnja, vl. Petar Kovač, Poljana, Varoška 28
77. Soboslikar i ličilac Franjo Martinović, Prekopakra, Frankopanska 17a
78. Staklarski servis "VILGLAS", vl. Vilko Pilat, Pakrac, Hrvatskih velikana 8
79. "KM" Montaţa metalnih konstrukcija za stropove, vl. Stjepan Kelemen, Filipovac, Lipička 15
80. Obrt "VISKOVIĆ", vl. Zlatko Visković, Pakrac, P. Polaka 25
54
81. AJMAN-GRADNJA, vl. Dario Ajman, Prekopakra, Matkovac 9
82. "FRIVANTO", vl. Ivan Frićer, Prekopakra, Matkovac 82
83. OBRT "GORAN", vl. Pero Prodanović, Brezine, Brezine 104
84. SOBOSLIKARSKO-LIĈILAĈKI OBRT MAĈEK, vl. Mario Maček, Pakrac, Kneza Branimira 37
85. NOVALIS SOBOSLIKAR LIĈILAC Draţen Sudetić, Prekopakra, S. Radića 48
86. BAGARIĆ OBRT ARMIRAĈKI RADOVI, vl. Dragan Bagarić, Prekopakra, S. Radića 23
87. SOBOSLIKAR I LIĈILAC, vl. Srđan Potrebić, Pakrac, G. Viteza 18
55
ANNEX 3
EXCERPT OF COUNTY'S DEVELOPMENT STRATEGY OF
POZESKO-SLAVONSKA COUNTY 2011-2013
3.3.7. SME economy
Even though entrepreneurs are not divided into „small“ or „big“ but only on
successful and less successful, SME segment has a special importance since smaller
economic actors adapt more easily to market demands and accept faster the
structural changes than the big systems. With few business resources engaged they
achieve better financial results, and record increase in employment. This is the
reasons why small and medium entrepreneurs have greater and greater role in the
overall economic development of certain region.
It is understandable that small economy cannot operate separately and that it adds
on the big companies in activities that are strategic directions of the entire
economic development. Hence, one of the goals of SME development is its
(inter)connection between the SME system itself, but also with big companies.
The most spread and the most important form of SMEs in the area of Pozesko-
slavonska county are CRAFTS and small and medium companies. The cooperative
economy, as a form of entrepreneurial organising, on the level of the County is not
significantly present.
Table: Structure of businesses by size in 2009.
STRUCTURE Businesses Employees
Number % Number %
Crafts 965 66,7 3.045 26,6
Small companies 462 31,9 3.842 33,6
Medium companies 16 1,1 2.406 21,1
SME sector 1.443 99,7 9.293 81,3
Big companies 5 0,3 2.134 18,7
TOTAL 1.448 100,0 11.427 100,0
Even in the crisis period that is facing with significant decrease of overall number of
businesses, the number of employees in SMEs shows the trend of increase.
CRAFTS in Pozesko-slavonska county, as a traditional economic activity, cover the
greatest number of all economic forms of organising with tendency of growth.
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Table: Number of crafts and employees
YEAR 2004 2005 2006 2007 2008
Number of
crafts
1.182 1.195 1.201 1.234 1.225
Employees
(incl.owner)
3.328 3.520 3.688 3.717 3.797
Average
no.employees
2,82 2,95 3,07 3,01 3,10
In 2009, the total financial result for SME sector (only companies) has been positive
(18,6 million kunas), while the big companies have resulted negatively (26,5 million
kunas). This negative business result in segment of large companies had a negative
impact on the entire business sector, through spill-over effect.
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ANNEX 4
SECTOR IMPLICATIONS
Changes in competitive conditions:
Demand for turnkey services is growing, maintenance is becoming part of the
construction package
Increased use of partnership-based operational model. Sector is including
more specialized SMEs. Providing full package requires close collaboration
since customers prefer working with one contractor (instead of several)
Increased competition in design solutions
Prequalification of contractors is becoming more common in competitive
bidding for contracts
Changes in operational environment:
The ratio of new construction to renovation decreases. Companies have to
have several competencies or be able to collect a consortium with right
competencies. Focus on networks and flexible specialization
Changes in building regulations promote quality but often increase costs. If
prices go up, contractors must be able to work more efficiently
Growing competition for skilled labour, greater need for training
Changes in final construction products
IT infrastructure becomes standard accessory in homes. This requires new
competencies for contractors and partnerships with IT suppliers
Increased emphasis on health and safety in the selection of materials and
structural components. Contractors must have access to the right data and
the skills to analyse and apply this data
Changes in customers' needs
Owners are interested in the whole package and its profitability, not the
details of construction. The contractor must act as an intelligent interface
between the customer and consortium of specialized subcontractors.
Customers' business needs often require the rapid completion of projects
Changes in demand for construction
Construction SMEs must handle maintenance and repair
Quality and equipment continue to increase. The value show positive trend,
meaning there will be fewer but bigger projects. Specialized contractors will
face extinction unless they operate in a consortium
Renovation of real estate and infrastructure will increase in the future
58
COST-BENEFIT ANALYSIS
The Feasibility Study summarises the project plan to set up: a) Home
Improvement Centre, as operative body of Slavonia Construction Guild,
through the reconstruction of existing building of Vocational school Pozega
construction workshops; b) its rationale, a market analysis for this kind of
business support institution and c) the institutional setting of the project.
This Cost-benefit analysis, as its integral part, summarises the analysis of its
financial viability and sustainability.
The study will present the short background, justification for the project and
the key financial assumptions of the project’s recurrent costs and revenues.
These estimates have been used to develop a financial model to test the
viability and sustainability of the project. It follows the conclusions of the
financial model.
A distinction is made between:
Commercial viability (returns to the project at full investment cost)
Financial sustainability (returns to the project at investment cost to the
promoter-investor)
Economic and social sustainability (returns to the project including
indirect and intangible costs and benefits).
BACKGROUND AND JUSTIFICATION OF THE PROJECT
Home Improvement Centre is a regional project intended to contribute to
regional economic development through assistance to regional construction
entrepreneurs and service providers. The project was widely supported in the
locality and the county, that is being confirmed through the partnership of 2
vocational schools (Vocational school Pozega, providing programs in
construction and carpentry, and Technical school Pozega) and Chambers of
Crafts and Commerce. The cooperation is expected by dozens of relevant
institutions out of which the most important ones are: Pozesko-Slavonska
County, Town of Pozega, Collega in Pozega and others.
This centre is supposed to act as a networking link between the construction
SMEs, in their joint attempt to improve their business performance, to apply
and commercialize new methods and materials in the field, to promote SME
competitiveness, and (not the least important) addressing social inclusion of
59
disadvantaged groups (young unemployed VET school students) and helping
them engage in entrepreneurial activity.
Considering that Pozesko-Slavonska County is a lagging-behind region, the
Centre is focusing its activities on construction sector, being considered as
prosperous and important for overall development. Construction is here
observed in the widest possible sense, including all activities connected to
HOME and living (electricity, plumbing, heating, carpentry, interior design,
maintenance, energy efficiency…). All home improvement activities will be
supported, that should lead to the companies' growth, better technological
solutions (environmentally friendly), greater value-added in already present
services and works. It should also assist in creation of better living conditions
and higher standard of local population.
The risks of the project are connected to the (potential) weak linkages
between businesses, inadequate support structures for high growth firms, an
under-developed entrepreneurial culture, or these and other factors
combined.
There are almost no examples in Europe of full private funding of projects of
business-support institutions. The public funding accounts for high proportion
of set up costs in any such institution.
When it comes to operating costs, depending on the services structure, the
operating costs are covered by the public subsidies. Incubators receive
around 60%, business-counselling institutions around 70%, while institutions that
focus on education and training up to 100% of operating costs cover by the
public (or Business-networks) subsidies.
The fact is that many of these institutions serve the public interest and
therefore the subsidies are justified. Still, there is a strong argument that
incubators must be encouraged to maximise income generation from its
services, so that the public support can be spread across a larger range of
schemes.
60
KEY FINANCIAL ASSUMPTIONS
Initial investment:
The Centre will initially be highly dependent on public financing. This is in line
with the expectations (and usual practice), given that one of the functions of
business-support institutions is to address market challenges of existing
companies (helping them survive and grow) and to facilitate accelerated
SME growth to new businesses which, by their very nature, have little in the
way of collateral or revenue until they have reached the mature stage of
their development.
Revenues of the project:
Taking into account that the future Home Improvement Centre will operate
within the not-for-profit VET school institution, and that it will be founded with
the purpose of helping the local construction SMEs, it cannot be expected
that it will create significant revenue. The founders (Vocational school Pozega
and construction entrepreneurs) are bounded to finance all the difference
created from costs and benefits. Pozesko-slavonska county and Town of
Pozega have also expressed their support in terms of financing and promoting
of Home Improvement Centre.
However, because of the limited budget potential of the founder and
supporters, it is strongly suggested that the Home Improvement Centre
becomes financially sustainable and self-sufficient. This is a challenge that is
achievable through the long-term credibility building in the marketplace and
developing a comprehensive range of business support services.
61
Share of certain types of revenues are calculated on the basis of CSES study:
Types of Business Support Services In house External
No. % No. %
(1) Pre-incubation services 66 11,74% 15 3,16%
(2) Business planning and forming a company 62 11,03% 25 5,27%
(3) Training to develop business skills 36 6,41% 47 9,92%
(4) Accounting, legal and other related services 16 2,85% 57 12,03%
(5) Market research, sales and marketing 31 5,52% 52 10,97%
(6) Help with exporting and/or partner search abroad 28 4,98% 52 10,97%
(7) Help with e-business and other aspects of ICT 39 6,94% 42 8,86%
(8) Advice on development of new products and services 43 7,65% 35 7,38%
(9) Help with raising bank finance, grandts, venture capital 68 12,10% 28 5,91%
(10) Incubator venture capital fund, business angel network 31 5,52% 32 6,75% (11) Advice on recruitment of staff and personnel
management 32 5,69% 35 7,38%
(12) Networking, e.g. with other entrepreneurs, customers 64 11,39% 24 5,06%
(13) Mentors, board members and other senior advisers 38 6,76% 27 5,70%
(14) Other services 8 1,42% 3 0,63%
TOTAL / Percentage 562 100,00% 474 100,00%
The Centre will focus on provision of necessary educational and advisory
services primarily for the members of Slavonia Construction Guild. This
organisation is the main target group, and will have the possibility to manage
and lead the work of Home Improvement Centre, together with the
Vocational school Pozega.
They will be offered to establish a membership fee that will be at a
competitive monthly price that will subsequently provide some exact services
of trainings, lectures, education, networking activities or counselling by
construction or energy efficiency experts. However, since the actual interest
for regular membership fee cannot be estimated in the initial phase, the Cost-
benefit analysis is using the principle of payment of each service or training
(by the number of services or trainings).
The Centre will seek to provide its clients with a comprehensive range of
services with a full-service offering a combination of business support services,
counselling, more specific services (energy audits) and other assistance. The
quality of the service, and not the physical aspects, is the most critical aspect
of the Centre's operation. However, it is a fact that the physical proximity to
other entrepreneurs can plan a beneficial role, both by catalysing the
entrepreneurial process and by facilitating networking, alliances and
collaboration between firms.
Start-up services is a term that describes support services to would-be
entrepreneurs before they launch their business. This includes assistance in
creation of a business plans, training and advice of forming a company.
62
Business support services include business planning, advice on accessing
capital, marketing, identification of suitable partners and others. Some
specialist services (e.g. legal, accounting) can be provided by the external
providers with whom the staff has established relationship. These services are
of interest to SMEs while large private sector does not search for such
consultancy in business incubators.
Technology-Innovation services assume access to centres of excellence
(R&D), or involvement in development of regional technology clusters.
After Care, Outreach, Networking and Virtual Support Services – are some of
the services that might be provided by the Centre.
The principle of pricing the provided services, used in this analysis is next:
VET school operates under the national support, being not-for-profit institution
that educates for immediately applied jobs in regional economy. Home
Improvement Centre will also operate under these rules, but taking care
about the financial sustainability of the programs. VET school teachers have
up to 10 hours weekly for „additional work“ within which they assist in
organisation of different school activities (Graduation exam, competitions of
students, promotion of school, etc.). This project assumes their direct
engagement every week for minimum of 2hours/each. 6 (six) VET school
teachers will be actively engaged in the Centre's work, through holding
lectures, training, provision of services, etc. Most of their services will be
provided at symbolic charge or free of charge.
The situation is different when the services are being outsources to external
suppliers (lecturers, consultants, etc.). In those cases, the full price must be
paid, although there is a need for public funding to cover part of these costs
and make them more attractive to users. The price of the services will be
calculated on the basis of needed number of working hours to perform the
service. 7 It is expected that suppliers and authorised agents of producers of
new construction materials (i.e. Ytong, Knauf …) will hold lectures about their
materials free of charge.
Another revenue source is expected to come from the financial support
provided from the Ministry of Entrepreneurship and Crafts; possibly of Ministry
of Regional Development. Certain project can be funded by the Fund for
Environmental Protection and Energy Efficiency, Ministry of Tourism (or even
7 For example, creation of quality business plan usually takes at least 7 working days of
experts. Taking into account that, the market price totals (7days x 8h x 15EUR/h = 840 EUR)
63
Ministry of Culture, in case the specific project promotes tradition or cultural
heritage in architecture or construction).
Financial support is expected from the Town of Pozega and Pozesko-
slavonska county that have a direct interest for this project.
COSTS
Recurrent cost implications have been calculated by estimating the
resources needed to operate the Centre and associated equipment.
Recurrent costs include wage costs, material cost, maintenance services,
heating etc. It is estimated that the annual operational costs equal
approximately EUR 44.900. See calculation tables for more details.
The key position in the Centre will have two members of staff:
a) The first Home Improvement Centre employee will be the BUSINESS
CONSULTANT, who will need to provide overall management and
guidance for the organisation in addition to construction business
development. Estimated salary would be 1100 EUR monthly
(approximately 2000 EUR including benefits and travel).
b) The second Home Improvement Centre employee will be a
CONSTRUCTION ENGINEER, a representative of VET school Construction
department. This will be a person available at all times to investors and
clients, providing them with his/her advice and consultation regarding
the choice of optimal solutions in home improvement or building.
However, this will be an employee of VET school (teacher) and will be
reassigned from the group of 6 construction engineers in school.
In the fifth year of work of Home Improvement Centre, this Study envisages
the employment of ELECTRICAL ENGINEER.
Total estimated operative annual cost of Home Improvement Centre is 44.900
EUR with a full complement of staff and including all expenses.
During the start-up phase the Centre will need working capital to pre-finance
the first 90 working days in the 1st year. This amount is estimated to 5000 EUR,
as sufficient to cover the basic costs.
Other important financial assumptions are presented on Sheet:
MAIN ASSUMPTIONS in the CBA calculation.
64
MARKET ANALYSIS
Demand:
Due to the lack of elemental information (Labour Force Survey data) it is hard
to get a clear picture about the regional labour market, especially a part on
educational and training needs of entrepreneurs, small and medium
enterprises.
Based on the inputs provided by the project partner Chamber of Crafts, in
regard to training services, entrepreneurs are aware of importance of
technical training, market research training, IT training and management
training. The usage, purchase and repetition do not follow the expression of
interest, though. Trainings connected with the legal requirements (safety
training, accountancy regulations, etc.) are the most attended. Regarding
the consulting services, the highest level of awareness was related to
technology, product development, IT, financial management investment and
legal consulting services.
Entrepreneurs KNOW they should ask someone for advice and services, but
they usually do it only in emergency case. They still consider themselves as the
best advisors for their businesses. Also, they still want to control everything in
their businesses.
In regard to business development services, the highest level of awareness is
related to fairs, lobbying and representing. Using and purchasing is low,
though. Linking with business partners is frequently perceived as very
demanded service, even considered as some kind of magic solution for many
enterprises (as an easier way to start export or start using new technology).
The structured interviews conducted by the Vocational school have shown
that entrepreneurs are not satisfied by the associations that should provide
services of training and consultancy (Chamber of Commerce, Chamber of
Crafts).
In the Employers' Survey, conducted by the Croatian Employment Service in
April 2011, on the question about the need for additional education, only
19,2% of employers has answered positively. They have expressed this need
mostly in context of retaining the existing jobs. Only 7 employers have
expressed the need for more extensive additional training for their workers in
technical skills and expert vocational skills. IT training was recognized by 11
employers. Foreign languages are needed by only 5 employers. 8 employers
want to improve relations with clients, while team work needs improvement
(as is stated in the Survey) at 6 employers.
65
According to the above described facts, the demand will have to be partly
developed and „redirected“ towards quality services that will improve the
competitiveness of SMEs and performance success of companies.
Supply:
The only institutions that can be considered as competitors (of any kind) are:
Entrepreneurial Centre and Incubator in Pakrac, and Entrepreneurial Centre
and Incubator in Pleternica, both offer excellent premises and services for
new companies. However, even if it is in the same county, Pakrac and
Pleternica are dislocated from Pozega, so it cannot be taken into account for
the local businesses. The first Centre targets the market of Lipik, Daruvar and
other western towns (as expressed in their Marketing plan). The distance of 50
km and weak traffic connections make it impossible for the local companies
to receive appropriate service or advice in Pakrac. On the other hand, the
lack of relevant entrepreneurial training, forces Pozega's managers and
entrepreneurs to travel to Pakrac and Pleternica, since there are no similar
events closer (as testified in Pakrac' Center). Pleternica is focused on
development of rural economy, primarily food processing and rural tourism
related activities. So, the target group of this project cannot receive the
necessary services.
Centre for Technological Development Slavonski Brod – works as a regional
development agency. Because of their limited capacities (staff), they are
usually not available for providing assistance to Pozesko-Slavonska County's
companies. The interest of their local businesses does not leave much space
for assisting the neighbouring County.
Business-Innovation-Science Centre Nova Gradiška – an excellent newly built
Incubator space that offers also complex services and assistance in product
development. This is also very dislocated premise, and weak traffic
connections make it hard for Pozesko-Slavonska County companies to get
more involved and engaged into their work.
Also, there are no examples of Incubators and Centres that are focused or
specialized in construction economy and entrepreneurship. The Home
Improvement Centre shall give focus on the property related field, in order to
serve the actual need of the locality.