Leviatan Design’s activity started in 2012 with a focus on offering integrated architecture and civil engineering services and evolved, in its 10 years of operation, to provide complete services for design & build type constructions. Part of the group of companies is also Ubitech Construcții, a company established in 2015, which offers comprehensive services in the field of construction – general entrepreneurship, design and execution, project management and implementation.

With 100% Romanian capital, this group has made its place in the Romanian construction market through the vision of its young entrepreneur founders, a vision that has been from the outset oriented towards sustainable development through technology and innovation.

We learn about the state of the construction market and the main current challenges from Cătălin Podaru, CEO Leviatan Design and Ubitech Construcții.

What are 3 pieces of advice you would give to a new client for the correct acquisition of design and execution services for construction works?

“Firstly, my advice for the beneficiary, namely the client, would be to define their requirements very well, keeping in mind, in as much detail as possible, their space usage needs so that the design team can determine the optimal technical specifications for the project in relation to the established budget.

Another piece of advice I could give has more to do with choosing the design and execution company. In the introductory meetings, the client should ask for the presentation of work methods and the methodology used during the project’s implementation and execution, as well as concrete examples of their implementation. Only in this way can the client make the right decision, which ensures a high level of project quality. Also, it is imperative that the presentation of the working method and management capacity be in line with the price offer, as many beneficiaries choose the lowest price in the bidding phase, and later encounter multiple problems and errors during project implementation. Because of this, the execution time and the budget allocated to the project can increase, without achieving the level of quality required by the client.

The third piece of advice I could give to a new client is to ask the design and execution company for a portfolio of completed projects, both for the design phase and for the execution phase, in accordance with the BIM standard. Even if most beneficiaries are still not familiar with what this process standard represents, they can learn about the benefits it brings in the design phase and in the execution phase, as well as in the operation phase.

The use of the BIM methodology in design and execution provides the client with more transparency and direct control elements in all stages of the project, losses are reduced, and the number of remedial works for errors is decreased. Also, BIM ensures rapid coordination between specialties, and the client can understand the technical and design implications of the project, from the design phase, even without having technical knowledge. Moreover, the client can monitor the progress of implementation and how quality requirements imposed within the project are respected almost in real time.

It is very important to mention that BIM contributes to reducing decision-making time during the project’s implementation and realization, and the biggest benefit for the client comes in the exploitation phase, as BIM provides the client with detailed information about the built space and the possibility of intelligent exploitation.”

What are 3 pitfalls/mistakes commonly encountered that you observe in clients who purchase design and execution services?

“A very common mistake among clients who purchase design and execution services is the incomplete definition of the design theme, in relation to the functional requirements of the spaces. Often, in constructing this theme, technical requirements are used rather than functional ones, which can generate confusion among specialists, trying to understand what the functional requirements are based on the technical requirements presented in the project.

Another frequently encountered mistake, especially in Romania, refers to the fact that most clients, including public institutions, allocate a very short time for the project realization and do not impose performance indicators that would ensure, in the implementation part, namely the execution, minimal losses and decreased error correction work.

Due to imposing too short a design time, many projects end up being incomplete and poorly coordinated, having the list of material quantities and technical sheets compiled incorrectly. All these aspects lead to a longer time in the execution phase and the revision of the quantities list and technical specifications with compliant and existing products on the market. This is the reason why the budget allocated to a project increases, leading to changes in solutions, deepening defects or conflicts between specialties and the lack of traceability of these changes, and finally, there are no real quality indicators for the completed project, which could be applied in the execution process.

Imposing too short a design time inevitably leads to the extension of deadlines and the arbitrary resolution of various technical challenges. In this context, a large part of the contractors no longer strictly adhere to the technical documentation and adopt, in many cases, solutions in an empirical manner, on-site, which generates multiple defects or non-conformities in the operation phase. Thus, the time gained in the design phase and the savings obtained regarding the design budget lead to delays in the execution phase, higher expenses during the construction realization and additional costs in the operation phase. Therefore, if the design time is too short, it’s almost impossible to approach optimal solutions, both in the construction process and in the operation phase. For this reason, we end up having defective spaces that are difficult to use and operate, not to mention the overconsumption of resources and energy due to the need for continuous adjustments and remedies in the operation phase.

A third common mistake is the improper understanding of the costs generated by the investment project. Many clients still believe that the project’s cost is given mainly by the execution cost. In reality, the cost of a construction project should be considered throughout the entire life cycle of the building, from the design phase, through the construction and operation, to the demolition or conversion stage. Each of these stages generates costs, and the design and execution costs are only a small part of the total costs. The main costs are incurred in the operation phase and can be influenced by the solutions chosen in the design and execution phase. Thus, the focus on the cost of design and execution can lead to higher total costs over the life cycle of the building.”

What are the major trends in the construction sector, both locally and internationally?

“I believe that the construction sector is currently facing general challenges.

First of all, there is a notable lack of specialists in design and execution, as well as in the skilled and unskilled workforce for construction sites.
Other challenges are closely linked to the rampant increase in prices, which does not offer medium and long-term predictability, as well as problems recorded in the supply chain, which affect orders for construction materials and equipment, generating very long delivery times, which are often not respected by suppliers.

The increase in financing costs, which have doubled in the last year, is another challenge facing the construction sector. Costs have a major impact on large-scale projects, hence financing is essential for the successful completion of projects.

Wages bring other challenges in the construction field. Although our companies have increased salaries this year by 20% on average, price increases caused by inflation and other factors have created real challenges in ensuring wages that motivate staff, so that they do not consider leaving. These problems are also exacerbated by the modification of thresholds for ensuring facilities in construction, and the increase of the minimum wage in this field.

All these challenges come at a time when Romania needs large and very large investments in the coming years, which may lead to the impossibility of making these investments. Starting from this scenario, I would like to raise an alarm. Government investments from national funds and from the RRF are vital for economic recovery and strengthening, especially in the context of the current security crisis and economic uncertainty, but I believe that government measures should come as soon as possible to support construction companies, as the last IMM Invest measures of this year are no longer attractive to banks.”

How do you see the evolution of the market in your niche in Romania in the next 6-12 months?

“Considering the funding and investment budget in Romania, as well as the opportunities Romania has for investors, I believe that the market in the construction sector will have an upward trend. Despite the challenges mentioned earlier, I believe that the opportunities that construction companies have will determine the continuation of the process of transformation and rapid adaptation to advanced technological solutions, both in the design process and in the execution part. In this way, it will be possible to approach energy-efficient and environmentally friendly solutions in construction projects.”

Can you tell us about some of the objectives of LEVIATAN DESIGN | UBITECH that you are implementing during this period?

“Our group of companies aims to continue the process of development and digitization of design and execution processes, to streamline and simplify the activity of our teams and to be able to deliver projects at a higher level of quality, in the shortest possible time.

Also, we aim to adopt in our projects solutions and equipment that offer more benefits to the beneficiary, in the construction phase and especially in the operation phase. Thus, the projects we carry out can be increasingly energy efficient, with a reduced impact on the environment. Moreover, we test and identify solutions to provide the beneficiary with Digital TWIN tools, to facilitate intelligent and efficient operation of the built space.”

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