Features of the functioning of the Ukrainian market for design work and the development of design in a pandemic.
Authors: Shumak L.V. 
Published: December 2021

The market for design work in civil and industrial construction was one of the first to react to the crisis trends during a pandemic in the economy. Back in 2013, the volume of orders declined, and the peak of the decline was in 2014. The main reason for the difficulties is the reduction in investment programs of civil and industrial enterprises, and developers. The Ukrainian market for design works is distinguished by a high level of competition. A large number of design companies are actively working in this market niche. This fact constantly pushes market participants to take active steps to adjust the competitive strategy, positioning strategy and pricing. The primary signs of a crisis in design are also recognized through price indicators, which personify both the cost of the project or design services, and the results of the project enterprise, taking into account the factors that form the price level. In recent years, the price indicators of the construction industry have been unstable and completely dependent on external market conditions. Price as an economic characteristic is a significant regulator in the project market of Ukraine and abroad. The design market is the backbone of the construction industry with a volume of over UAH 1 billion per year and high added value. The field requires highly qualified staffing and the introduction of modern technologies. Outdated systems of training, certification of specialists and technical regulation hinder the development of the project market in Ukraine. The market is prone to underestimated cost of design work. In 2018, the share of design in the total cost of construction in Ukraine averaged 1.5-2%; in France it was 8-13%, and in Great Britain the level reached 10-17%. There is practically no system of state orders for design. Today our market is characterized by technological backwardness. The work of designers is low-paid, which, accordingly, affects the quality. High-quality architecture is more expensive than low-quality one. In Ukraine, the demand for quality design is just beginning to emerge. In this regard, it is very important to create a competitive environment that will contribute to development.

The project market, like the construction industry as a whole, is extremely heterogeneous. Currently, there are thousands of various design bureaus and small workshops in Ukraine, employing no more than ten people, and the number of freelance designers cannot be statistically estimated. Prices for design, as well as the approaches used to provide services, differ dramatically in these organizations. A high price for a service does not necessarily guarantee that the quality of its delivery will be the same. Therefore, first of all, one should imagine what kind of work will be performed and what their essence is. Many investors prefer to design their facilities using the services of European specialists. What are the features and secrets of the Ukrainian project market? Are there really so few good designers in their country, and by what parameters can they still be found? The article examines the features of the functioning of the Ukrainian market for design work and the development of design in a pandemic.