Overview of common ICT work prices in Czech republic in 2023

In interviews and through LinkedIn "messaging" I get the question "how much do you actually pay freelancers (people externally) for NRB (The National development bank of CZ)?". A sensitive question in the commercial world. In the world of public procurement, we have the bible https://lnkd.in/eq_w4nM5 " in which price ranges we simply buy".

About the overview

This document in "P?ehled_cen_ICT_prací_-_15._01._2024.pdf" here https://www.mvcr.cz/clanek/prehled-obvyklych-cen-ict-praci.aspx presents an overview of the usual prices for ICT work based on actual prices agreed in ICT contracts. The data source for the overview is the contracts published in the Contracts Register https://smlouvy.gov.cz . The purpose of the overview is to create price awareness for contracting authorities of ICT contracts, as a basis for estimating the expected price of the contract. This document does not set recommended prices.

The overview focuses exclusively on prices explicitly stated in contracts as prices per man-day or man-hour of work. In the fact sheet itself, prices per man-day and excluding VAT are always quoted.

The overview is drawn up for prices valid from 1 July 2023 to 31 December 2023 and in the Czech Republic.

The document is prepared on the basis of the Methodology for the preparation of the ICT Price List version 1.0.

In total, more than 51 thousand documents were analysed. 971 contracts were then used for the final evaluation, with 862 prices finally processed.

Authors

This document was prepared by a team of experts from Ernst & Young, s.r.o. The client of this document is an association of thirteen institutions represented by the Ministry of the Interior. This association decides whether to publish the document or to make it available to others.

Principles for the creation and interpretation of the factsheet

The overview was created on the basis of an automated extraction of the basic data base and subsequent professional evaluation by a team of experts.

The procedural principle for the development of the price list of ICT works is standardised and is constant for the initial development of the output as well as for the periodic updates of the price list carried out on a semi-annual basis. An exception is the creation and fixing of keyword and concept databases that serve the functionality of the application resources.

In processing the overview, both technological means for extracting data from the register of contracts, processing, evaluation and subsequent analysis, and manual procedures for checking the results of the processed data were used. It also included an internal statistical evaluation of the defined algorithms.

The statistical processing purposely did not include contracts containing misleading data - outliers that some documents may contain, where it is clear that these outliers may have been caused by the level of error in the published documents. At the same time, filters were applied to significantly eliminate multiple occurrences and statistically inappropriate documents.

The analytical report itself interprets the resulting values in both graphical and tabular form in such a way as to ensure easy orientation and sufficient clarity of the obtained and evaluated data. At the same time, according to the Client's request, the structure of the documents delivered by the University of Economics in Prague until 2019 was maintained to the maximum extent possible.

Metadata is maintained for each price data and therefore each price and the method of its determination are traceable.

Statistical data and their interpretation

For each role or service, the statistical indicators listed below are provided:

- Lower quartile - quantile indicator - a calculated value indicating a cut-off value where 25% of the values analysed were below and 75% of the values were above this value;

- Median - a quantile indicator - a calculated value indicating the mean value (median price) where 50% of the values analysed were lower and 50% of the values were higher than this value;

- H. Quartile - a quantile indicator - a calculated value indicating a cut-off value where

75 % of the values analysed were lower and 25 % were higher than this value;

- Min. indicates the lowest price value obtained;

- Average describes the arithmetic mean of the price values obtained;

- Max. indicates the highest price value obtained;

- Number of contracts indicates the number of contracts analysed from which values could be obtained and these are counted in the given statistical set;

- Number of contractors indicates the number of unique contractor IDs for which price values could be obtained and these contracts are counted in the given statistical set;

- Prices indicates the number of price data obtained in the given set;

- Usual Price indicates whether, in view of the statistical analysis of the values, it is recommended to consider the full range between the minimum and maximum price as the usual price, or whether it is recommended to calculate values between the lower and upper quartile.

A special record is kept of the number of relevant and non-relevant contracts for the accuracy analysis. Relevant contracts are kept in the base matrix with the roles and their frequency will be identifiable through the unique contract number for the roles. The identification numbers of non-relevant contracts are recorded in a separate matrix.

The ICT Works Review evaluates prices at these two levels:

- Work Type, where Work Type primarily defines the expertise or characteristics of the work.

- Category - for each Type of Work, their categories are then evaluated, where category is meant to be the refinement/specialization within the Type of Work. The identified categories are primarily taken from individual contract disclosures, so do not include all possible combinations used in an ICT environment. At the same time, for some Work Types the categories are generalised

For example prices in CZK (about 25,- CZK represents 1 EUR in average) per MD (man-day = 8 hours):

The orders, in this case of NRB, are published on the Tender Arena (https://lnkd.in/eWEWy9dB ) and you can quickly find out the price interval, for example, 6,000 - 11,000 CZK per MD (example from mini-tender no. 8 in the document "Call for mini-tender c.8_2024_DNS_Datovy analytik. pdf" in Czech only sorry).

Thanks for the questions and I wish everyone a successful day - week - project - program.

Yours,

Ross Schwarz

P.S. I can send you translation from CZ into EN of the whole comprehensive Study (about 40 pages) translated by Deep in MS Word.