Serbia’s construction industry recorded a sharp increase in newly contracted work during the first half of 2026, while the value of construction activity actually completed grew considerably more slowly, highlighting a widening difference between future orders and current execution.
The value of new construction contracts for projects on Serbian territory rose by 32.4% in nominal terms during the first six months of the year. Over the same period, the value of construction works performed increased by 10.5% in nominal terms, while growth adjusted for construction prices amounted to just 1.3%.
Contractor Order Books Expand Faster Than Output
A separate survey covering the operations of Serbian contractors both within the country and abroad showed 30.6% nominal growth in contracted work during the first half of 2026. In real terms, the value of contracted work increased by 19.7%.
Completed work by the surveyed contractors, however, grew by only 0.2% in real terms over the same period. Although the two statistical measures differ in geographic scope and reporting coverage, both indicate that new contracting activity is expanding faster than the execution of existing projects.
Rising Contracts Increase Operational and Financing Requirements
For construction companies, expanding order books provide a larger pipeline of future work and potential revenue. Delivering that pipeline also requires sufficient working capital, skilled labour, equipment and subcontractor capacity to meet project obligations.
Lenders and project owners face questions about whether contractors can execute the growing volume of contracted work without substantial delays, cost overruns or an increase in claims. The gap between new contracts and completed works makes delivery capacity an important consideration for companies managing construction projects.
Project Costs and Completion Rates Affect Financial Performance
Higher contract volumes do not necessarily result in stronger profitability. Projects agreed before changes in labour, equipment or material costs may become less attractive if execution is delayed. The financial performance of construction companies will therefore depend increasingly on their ability to turn signed agreements into completed, certified and paid construction works, rather than relying solely on continued growth in new orders.
