They remained without competitors regarding the tender for the new government quarter. It’s not on them that they didn’t win. Their name is now widely known and their presence in the business life is undeniable. KÉSZ Holding Ltd. is aimed at becoming a significant player in the construction and investment market in the CEE region. The CEO/co-owner started from a one-man company and has reached the top now. We talked with Zoltán Jutasi.

Is the government quarter case a finished matched?

We can indeed think of it as a championship. The first round is already behind us with the result of cancelling the project for political reasons. We didn’t lose the match, in fact we won. The Treasury Property Directorate (KVI) notified us about accepting our offer, so in this sense we can view our application as a success. It is another matter that the KVI decided to invalidate the procedure.

What will be the next match?

We are investigating the possibility of a lawsuit, but we would rather start a new match about where and in what way a new government quarter could be built. If it were a well elaborated procurement from both a political and business perspective, we would definitely participate.

It is unimaginable for a “mortal person” how to win a government investment worth billions of Forints. In other terms: how can one get close to such big amounts?

There has to be considerable amount of resources available. It is meaningful to apply for a tender if the company has relevant references, stable financial background and adequate professional support.

So there’s no chance for a smaller company to win, isn’t there?

I don’t consider it to be impossible, but we have to be aware of what is the position of the prospective company on that imaginary ladder, because the improper assessment of the position can lead to putting the feasibility of the project in danger. There are different tasks and focus areas at a small and at a big company.  I’ve gained experience in both of them. I started my career at a small office in Kőbánya in the 1990s, and now I manage a company with 70 billion HUF revenue. The company size shouldn’t be left out from consideration.

We have to know our limits; however, some self-criticism is also needed…

This is absolutely true. It could be felt during the government quarter tender too. It’s been said by many that a lot of the competitors withdrew their application because the project was impossible to carry out. On the other hand, I don’t think they had the necessary resources that would have guaranteed the success.

They couldn’t get a handle on you, you got away without scandals. The only thing that could be picked on is that the two top leaders of KÉSZ was part of Wallis not long ago, which also applied for the tender, then withdrew.

This has already come up when Gyula Gansperger and I left Wallis that KÉSZ instantly had a chance for winning the tender. Although it sounds great, in the real business life there are no such coincidences.

Would you tell us why did you leave Wallis?

There weren’t further opportunities that would have meant a challenge for me. I wasn’t part of the team at Wallis that was involved in the government quarter tender by the way.

What forces are behind public procurements? Is there a need to have a good network, a cousin, a good friend, or a well-targeted phone call?

Those times are gone now. I don’t say that there isn’t any network, because those who have been working in a certain field for a long time probably have personal relationships here and there. However, successful participation is not a matter of relationships or a phone call. In huge deals or public procurement tenders these things barely matter. In order to gain a favourable position notable professional work and background is needed. There is no bias among the decision makers regarding the final outcome; it doesn’t depend on the relationships.

Nonetheless, political intentions can matter to a great extent.

Yes, exactly. In the case of the government quarter a political decision was made, too. In my opinion harsh political fights and intentions are behind it.

Let’s turn to a more personal level. You mentioned you switched to KÉSZ because you didn’t find new challenges at Wallis. When does someone reach the top? How can it be felt?

Change is important for me; I cannot see the point of my work without meaningful, forward-looking tasks. I barely stand monotony and repetition, I look for refreshing changes. A personality test was conducted about me recently verifying this.

What type of leader are you? Strick or indulgent? Good-tempered or grumpy?

I am definitely good-tempered.  And optimistic, too. In well defined, clear situations I consider myself as a democratic leader, consulting with my colleagues, with both managers and employees. I strictly stick to agreements. In harsh situations I am ruthless; I concentrate on finding the solution without hesitation.

How can a company grow big? By, for example, entering into new fields?

It’s more complicated than that. Those who are stuck in one place will die. Considering the changes in the world economy, there is some kind of pressure to grow and expand. The expansion of multinationals has accelerated remarkably, only those companies can survive that act in accordance with the new conditions on the market.

It seems that the big Hungarian companies expand to the East. Is it a good direction?

Yes, based on experiences. The oil industry and the bank sector have already proven themselves in this. We have interest in Romania and Ukraine in the construction sector. We could learn from the neighbouring countries, where it is considered to be important to support the national companies indirectly. For us it is not the case, in fact, it’s a disadvantage.

That’s the reason for leaving?

Partly, yes. It is easy to get involved in big investments in the neighbouring countries if we can find appropriate strategic alliances and partners.

Why don’t you try yourselves in Western Europe?

The economic growth reached a point where it doesn’t have the same expected return as in the CEE region. It is not a coincidence that the Western European companies expand to the Eastern regions. We have some advantage, though: we can better understand the mentality of the Eastern countries.

Preparation and talent is also needed. Your career is unbroken, but I assume you didn’t plan to become a CEO as a kid…

I’ve seen a lot of good examples in my family. My father worked at a big company as a CEO, my uncle also filled in some higher positions. Directly or indirectly, but they had an impact on me. I joined the business world relatively early; with my fellow mates at secondary school we started to trade with IT devices. The reason for me to move forward is that I identified those situations in life from which I could benefit.

You also had to be hard-working, hadn’t you?

I would rather use the term fanaticism. I work 14-15 hours daily even to this very day. This comes with sacrifices. Unfortunately my family bears the brunt of it. However, since I have children I plan my schedule to be with my family at weekends.

Do they forgive you if it turns out in another way?

Not always. We have gone through a though period recently with the reorganization of the Group and the quarter tender. Everything depends on whether we are able to attract creative, well-prepared, hard-working, self-motivated people for our aims. I think I have a great team by my side.

Do you have some rest sometimes?

My family is my support. My two sons make sure to leave outside my work related problems. I like to read but I barely have the time to do so. I also miss doing sports; it is almost like a special day when I got the time to play football or squash with my buddies.

Author: Borzák Tibor