Abstract
Hungary's road construction industry before 1989 and changes that have occurred since 1989 are described. After the first round of privatisation ownership stood at 50% foreign ownwership, 44% State Property Agency, 4% municipalities and 2% employees. The reasons for privatisation and for foreign decisions to invest are outlined. Some of the effects of privatisation are discussed including a) investment and equipment; b) organisational structure; c) accounting; d) reporting to the owner; e)contract handling; f) technical improvements; g) profitability and incentive schemes; h) training; i) subcontracting; j) competition; and k) professional organisation. The views of some contractors and clients are reported.