Croatian Roads Introduce Incentives, but Also Penalties for Their Employees

Croatian Roads could become the first among Croatian state companies to introduce strict and concrete measures for controlling the effectiveness and efficiency of each of the 428 employees, as by the end of this year, as part of the company’s reorganization, it is planned to introduce salary incentives for good work, but also penalties for poor results, project delays, exceeding the investment plan, unjustified cost increases, as well as for a number of other parameters.

The efficiency in the realization of the construction of new or reconstruction and repair of about 7,000 kilometers of state roads, which are under the jurisdiction of HC, depends on this, writes Novi list. This is a kind of pilot project that is particularly interesting because HC currently has about 500 construction sites at the national level.

How much the new work criteria can be implemented in practice and when this will happen is currently difficult to predict, as Croatian Roads have been under criticism in recent years for delays in many projects.

As explained by the CEO of HC, Edo Kos, the new organization is based on the principle of introducing a manager for each project, who will be responsible for operational implementation, which will include the preparation of project documentation, construction preparation, and the actual execution of construction contracts.

Part of the reorganization is also integrated project management through the introduction of the Primavera software system, where a database will be created based on which daily planning, monitoring, and control of all projects will be enabled with an assessment of cost risks and the sustainability of deadlines, which will ultimately serve as the basis for evaluating the performance of each project director, as well as their team, whose members the directors will be able to choose themselves.