2. CONSTRUCTION COMPANY

Implementace cizojazyčných modulů za účelem profesního rozvoje středoškolských pedagogů v oblasti stavebnictví CZ.1.07/1.3.40/01.0040 Vysoká škola technická a ekonomická v Českých Budějovicích

2. CONSTRUCTION COMPANY

Annotation: The aim of the text is to introduce the subject Business in Building Industry, with legal amendments of construction companies, with the legal forms of the most common body corporate in construction companies. Next, the activities of construction companies are analyzed as well as their characteristics are compared to other field of business. A part of the text is a description of strategic objectives of construction companies and their design strategies. The conclusion deals with the processes and activities in a construction company. Key words: Construction company, legal forms of business, main and supporting activities of construction companies, construction company function, strategy of construction companies.


Construction Company

1. Scope of Business of Construction Companies The scope of business of construction companies cover the implementation of construction and activities related to them. These include the following activities: -

The execution of construction and assembly work for an external client;

-

Works for their needs - their own construction, site preparation;

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Mining of raw materials;

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Locksmith work, precast workshops, garages / repair shops;

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Transport;

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Property management and housing activity;

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Project work;

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Engineering activities;

-

Development activities.

2. Legal Forms of Business of Construction Companies Implementation of construction and related activities are dealt with in the Trade Act. Some of these activities are tying, i.e. they require a professional competence. These include the following items of business: -

Construction design

-

Construction, modification and removal.


Project activity and management of building implementation is a subject to authorization which amended by the authorization bill. Natural and legal persons may run these selected activities only via authorized persons. Trading Trades means a continuous activity carried out under a trade license in order to have a profit by a natural or legal person on their responsibility. Natural persons - entrepreneurs -

Directly enter into legal relations;

-

A businessman has competence;

-

Liable for the obligations of its assets.

Legal persons -

Company enters into legal relations;

-

Capital contribution of the partners depends on the chosen legal form of business.

Companies a) Joint stock company -

Is founded on a contract or certificate of incorporation (in the case of one founder);

-

Is liable for the obligations with its assets, shareholders are not liable for the obligations at all;

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The minimum amount of registered capital is CZK 2 million or in the case of a joint stock company with a share subscription , it is CZK 20 million;

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The supreme body is the general meeting;

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The statutory body is the Board of Directors;

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The supervisory body is the Supervisory Board;


-

Joint stock company is to make a reserve fund from profit.

b) Limited liability company (Ltd.) -

Is based on a social contract;

-

The minimum amount of registered capital is CZK 200 000,-;

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Limited liability company is liable for its debts to the amount of basic capital;

-

The supreme body is the general meeting of shareholders;

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The statutory body is one or more directors;

-

Companies are required to create a reserve fund from profit;

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Part of the profits may be distributed to shareholders as dividends.

3. Activities and Goals of Construction Companies Construction Company A construction company is legal, financial and economically independent organization whose formation, operation and termination depend on the needs of the production market. The aim of the company is to carry out the construction of buildings for profit and meet the demand of clients, possibly of other clients. The main activities of construction company The main activity of the building company is a building implementation - construction and assembly work.


Division: a) Work of main construction works - earth, masonry, plastering, concrete, assembly of prefabricated and steel structures; b) Work associated with construction - handicraft, assembly and finishing kinds of work; c) The assembly work - installation of windows, steel structures, HVAC, industrial piping, process equipment, lifts, etc. Support Activities of Construction Companies These activities include designing, building management, property management, space utilization,

planning,

reconstruction,

removal,

cleaning,

catering,

transport,

mail,

photocopying, etc. Acquisition Activities of Construction Companies Construction company carries out its main activity on the basis of acquisition - acquisition of construction contracts that give details on the workload and make a so-called production program. Function of construction companies a) Basic functions -

Sales

-

Research and development

-

Supply

-

Production

b) Cross-sectional functions -

Human Resources


-

Financing

-

Logistics

-

Business

-

Informatics

-

Organization

-

Management

-

Administration

Specifics in Construction Business The peculiarities of the construction business include: -

Minimum number of possibilities of production to reserves;

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Variety of construction output with significant differences in demand;

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The challenge of building works regarding the wearing and risky human work;

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With regard to longevity and size of construction projects, the emphasis is put on the quality of execution of works with respect to environmental conditions;

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Order risk and the risk of bad weather and geological conditions for a location of the building;

-

Agreements for the construction of the building is only a commitment to a performance product that does not yet exist;

-

The important role of building entrepreneurs and their impact on the course and outcome of construction activities;

-

The price of construction works affecting such as the price of a land, cost of capital, tax rates, etc.;


-

Construction is carried out on a customer land according to his / her projects and in accordance with his / her set deadlines construction; each site requires flexible workers, management, equipment and machinery.

4. Strategy of Construction Companies Main strategic aims -

Make a profit;

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Ensure the continuous existence of the company;

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Maintain and increase market share;

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Meet customer demand;

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Providing employment to their workers and care about their development.

Company Strategy The basic goal of construction companies is meeting the deadlines providing a high quality at reasonable cost and profit. An important strategic decision is the company expansion into foreign markets. The analysis of political, economic, social and technological environment (PEST analysis) serves to assess the feasibility of such an approach. Company Surroundings Construction company should be in line with its surroundings, which includes -

Environment;


-

Market of raw materials, land, existing buildings, information, labour and capital;

-

Competition Companies;

-

Public (citizens, institutions).

Company surroundings affect its focus, activities, organizational structure, internal operations and production. Surroundings are represented by investors and builders and construction companies can influence them. The customers enter into construction contract and the company surroundings create a company image. It makes a company identity with the level of communication and conduct of a business. The company identity is an important part of the corporate strategy.

5. Operation of Construction Companies Processes and Activities in Construction Companies The process is the transformation of entering factors (material, labour, equipment, etc.) with different activities which end with output for external or internal customers. Construction activities take place in the manufacturing process - on-site where there is a transformation of building materials through human and machine work into a product – a construction. Apart from main activities, the company purchases the needed services, building materials, it rents and buys the necessary machinery and equipment, invoices handover buildings, pays wages and taxes, etc. The company function (supply, marketing, organization, management and administration) is provided by company staff that ensures the construction process.


Production Factors The construction production process includes -

People with the necessary knowledge, skills, experience and information;

-

Building materials;

-

Construction machinery, equipment, means of transport.

Each of the production factors implies a certain amount of cash (payment of salaries and wages, purchase of machinery, services and materials). The lack of company funds is covered with a loan from a bank or from advances paid by investor/s. The construction company gradually passes and invoices its performances. Thereby it is entitled to reimbursement in the form of claim. The company receives cash by a payment of amounts due, which contributed to the execution of the contract. The cycle of values is concluded.

Dictionary: scope /skəʊp/ cover /ˈkʌvəʳ/ related to /rɪˈleɪtɪd tu:/ execution /ˌeksɪˈkjuːʃᵊn/ site preparation /saɪt ˌprepᵊrˈeɪʃᵊn/ assembly work /əˈsembli wɜːk/ to mine /tu: maɪn/ raw materials /rɔː məˈtɪəriəlz/ locksmith /ˈlɒksmɪθ/ precast /ˌpriːˈkɑːst/ workshop /ˈwɜːkʃɒp/ property /ˈprɒpəti/ management /ˈmænɪʤmənt/ engineering /ˌenʤɪˈnɪəʳɪŋ/ development //

rámec, rozsah, rámec zahrnovat vztahující se k provedení, realizace příprava staveniště kompletování, montáž těžit surové materiály zámečník prefabrikovaný dílna majetek správa strojírenství vývoj, rozvoj


legal /ˈliːgᵊl/ implementation /ˌɪmplɪmenˈteɪʃᵊn/ deal with /diːl wɪð/ trade act /treɪd ækt/ to require /tu: rɪˈkwaɪəʳ/ competence /ˈkɒmpɪtᵊnts/ to include /tu: ɪnˈkluːd/ item /ˈaɪtəm/ removal /rɪˈmuːvᵊl/ subject /ˈsʌbʤɪkt/ to amend /tu: əˈmend/ authorization /ˌɔːθᵊraɪˈzeɪʃᵊn/ bill /bɪl/ natural person /ˈnæʧᵊrᵊl ˈpɜːsᵊn/ legal person /ˈliːgᵊl ˈpɜːsᵊn/ to run /tu: rʌn/ selected /sɪˈlektɪd/ trading /ˈtreɪdɪŋ/ continuous /kənˈtɪnjuəs/ to carry out /tu: ˈkæri aʊt/ in order to /ɪn ˈɔːdəʳ tu:/ trade licence /treɪd ˈlaɪsᵊnts/ entrepreneur /ˌɒntrəprəˈnɜːʳ/ liable for /ˈlaɪəbᵊl fɔːʳ/ contribution /ˌkɒntrɪˈbjuːʃᵊn/ to depend on /tu: dɪˈpend ɒn/ chosen /ˈʧəʊzᵊn/ assets /ˈæsets/ joint stock company /ʤɔɪnt stɒk ˈkʌmpəni/ to be founded / tu: bɪ ˈfaʊndɪd / obligation /ˌɒblɪˈgeɪʃᵊn/ assets /ˈæset/ supreme /suːˈpriːm/ statutory /ˈstætjətᵊri/ board of directors /bɔːd ɒv dɪˈrektəʳz/ supervisory board /ˌsuːpəˈvaɪzᵊri bɔːd/ limited liability company /ˈlɪmɪtɪd ˌlaɪəˈbɪlətiˈkʌmpən /

právní, zákonný provedení, uskutečnění, realizace zabývat se, pojednávat, řešit co živnostenský zákon vyžadovat schopnost, obratnost, kvalifikace zahrnovat položka odstranění předmět upravit oprávnění, povolení, zplnomocnění navrhovaný zákon fyzická osoba právní osoba řídit, spravovat vybrané obchodování pokračující provést, dokončit aby živnostenský list obchodník odpovědný za příspěvek záviset na něčem vybraný aktiva akciová společnost být založen/a závazek, odpovědnost, dluhopis aktiva nejvyšší statutární, zákonný správní rada dozorčí rada společnost s ručením omezeným


reserve fund /rɪˈzɜːv fʌnd/ to distribute /tu: dɪˈstrɪbjuːt/ aim /eɪm/ meet the demands /miːt ðə dɪˈmɑːndz/ soil /sɔɪl/ masonry /ˈmeɪsᵊnri/ plastering /ˈplæstᵊrɪŋ/ concrete /ˈkɒŋkriːt/ to assembly /tu: əˈsembli/ HVAC (heating, ventilation, air conditioning) /ˈhiːtɪŋ, ˌventɪˈleɪʃᵊn, ˈeəkənˌdɪʃᵊnɪŋ/ handicraft /ˈhændɪkrɑːft/ piping /ˈpaɪpɪŋ/ acquisition /ˌækwɪˈzɪʃᵊn/ workload /ˈwɜːkləʊd/ research and development /rɪˈsɜːʧ ænd dɪˈveləpmənt/ supply /səˈplaɪ/ human resources /ˈhjuːmən ˈriːsɔːrsɪz/ peculiarity /pɪˌkjuːliˈærəti/ output /ˈaʊtpʊt/ significant /sɪgˈnɪfɪkənt/ challenge /ˈʧælɪnʤ/ regarding /rɪˈgɑːrdɪŋ/ longevity /lɒnˈʤevəti/ emphasis /ˈempfəsɪs/ agreement /əˈgriːmənt/ commitment /kəˈmɪtmənt/ performance /pəˈfɔːmənts/ impact /ˈɪmpækt/ outcome /ˈaʊtkʌm/ deadline /ˈdedlaɪn/ to set /tu: set/ to affect /tu: əˈfekt/ in accordance /ɪn əˈkɔːdᵊnts/ to maintain /tu: meɪnˈteɪn/ to increase /tu: ˈɪnkriːs/ to provide /tu: prəʊˈvaɪd/

rezervní fond rozdělovat, roznášet cíl splnit poptávku zemina zdivo omítnutí beton sestavit, smontovat topení, ventilace, klimatizace řemeslná výroba potrubí získání, koupě pracovní zatížení / zátěž výzkum a rozvoj dodávka lidské zdroje (osobní oddělení) typický znak výstup významný výzva s ohledem dlouhověkost důraz dohoda, smlouva závazek výkon; představení dopad výstup termín stanovit ovlivnit, postihnout v souladu udržovat, zachovávat zvýšit zajistit


to assess /tu: əˈses/ focus /ˈfəʊkəs/ level /ˈlevᵊl/ entering factors /ˈentᵊrɪŋ ˈfæktəz/ on-site /ɒn saɪt/ apart from /əˈpɑːt frɒm/ feasibility /ˌfiːzəˈbɪləti/ purchase /ˈpɜːʧəs/ advance /ədˈvɑːnts/ to be entitled /tu: bɪ ɪnˈtaɪtᵊld/ lack /læk/ invoice /ˈɪnvɔɪs/ handover /ˈhænˌdəʊvəʳ/ staff /stɑːf/ skills /skɪlz/ experience /ɪkˈspɪəriənts/ equipment /ɪˈkwɪpmənt/ means of transport /miːnz ɒv ˈtræntspɔːt/ to imply /tu: ɪmˈplaɪ/ reimbursement /ˌriːɪmˈbɜːsmənt/ loan /ləʊn/

ohodnotit pozornost, střed, ohnisko úroveň vstupní faktory na staveništi kromě proveditelnost, uskutečnitelnost koupě záloha, půjčka mít právo, být oprávněn nedostatek faktura předání zaměstnanci dovednost zkušenost vybavení dopravní prostředky naznačovat náhrada, odškodnění úvěr

Questions: 1. What does the trading mean? 2. What is the minimum amount of registered capital for a Limited Liability Company? 3. What are the cross-sectional functions of construction companies? 4. Name three main strategic aims of construction companies. 5. What or whom does the production process of construction companies include?


Exercises: I. Work in pair using sentences below. Think of helpful answers using will for spontaneous decisions. E.g. My car won‘t start. Possible helpful answer: I‘ll give you a lift. Sorry, I‘m too busy to chat at the moment.

Ouch! I‘ve cut myself. Don‘t forget it‘s Mum‘s birthday next week. I asked you to tidy the flat. I think the baby is crying. That‘s the doorbell. Here‘s € 50. Quick! Someone‘s just collapsed. The photocopier‘s broken down. I need a hand with this shelf. II. Think of typical New Year‘s resolutions. In pairs write 6 usual resolutions people make. E.g. I‘m going to cut down on drinking coffee. I‘m going to spend less hours on FB.


III. Choose the correct answer. 1. Can I borrow your car? ________ by 10 o'clock, I promise. I'll be back

I'm going to be back

2. Can I help you, sir? – Yes, ________ a coffee and a tuna sandwich. I'll have

I'm going to have

3. Do you know about Claire? ________ a baby! She'll have

She's going to have

4. “I'm really tired.” – “________ you home if you want.” I'll take

I'm going to take

5. He's got a new job in Boston, so ________ there. He’ll move

He’s going to move

6. What are you doing tomorrow? – I don't know. I think ________ my parents. I'll visit

I'm going to visit

7. Ugh, that food was terrible! I think ________ sick! I'll be

I'm going to be

8. ________ new strings for my guitar when you are in town? Thanks.


Are you going to buy

Will you buy

9. Don't go out now. ________ a thunderstorm. I've just heard it on the radio. There'll be

There's going to be

10. I don't think that ________ on Mars. people are ever going to live

people will ever live

IV. Choose the correct version. Q1 - I feel dreadful; I ____ be sick. am going to will Either could be used here no option Q2 - Tonight, I ____ stay in- I've rented a video. am going to will Either could be used here no option Q3 - If you have any problems, don't worry; I ____ help you. am going to will Either could be used here no option Q4 - I completely forgot about it. Give me a moment; I ____ do it now. am going to will Either could be used here no option


Q5 - Look at those clouds- it ____ rain any minute now. is going to will Either could be used here no option Q6 - The weather forecast says it ____ snow tomorrow. is going to will Either could be used here no option

Q7 - That's the phone- I ____ answer it. am going to will Either could be used here no option Q8 - Thanks for the offer, but I'm OK; Shane ____ help me. is going to will Either could be used here no option Q9 - Where are you going? I am going to see a friend. I'll see a friend. Either could be used here no option

Q10 - Tea or coffee? I'm going to have tea, please. I'll have tea, please. Either could be used here no option


V. Complete the sentences with will (´ll) or (be) going to and a suitable verb. If both can be used, write them both.

Example If you are ready, I’LL EXPLAIN how the equipment operates.

1) I warn you that if you see here again, I________your parents. 2)If we don’t leave now, we_____the train. 3) If you decide to contact Jane, I_____you her address. 4) If you stand in the rain much longer, you __________cold. 5) He’s seriously hurt. If we don’t get help immediately, he__________. 6) If you want to leave this afternoon, Joe_______________you to the station. 7) If you visit Bernard in Vienna, I´m sure you _________very welcome.

Source: Hewings, M., 2004

Mind map: Fill in your idea you have in our mind when talking about Building Site. Three examples have been done for you to help you start off. Then choose one and talk about it with your partner for about two minutes.


Building Company

Process

Materials

Machinery

Solutions: Questions 1. It is an activity which continues, and it is carried out under a trade license by a natural or legal person on their responsibility. 2. It is CZK 200,000,-. 3. E.g. HR, IT, logistics. 4. E.g. to make a profit; to meet a customer demand; to secure the continuous existence of the company. 5. People with necessary qualifications, building materials, machinery.

Exercise


I. Possible answers Sorry, I‘m too busy to chat at the moment.→ I’ll call you later, then. Ouch! I‘ve cut myself. → Don’t worry, I’ll get the plaster. Don‘t forget it‘s Mum‘s birthday next week. → We’ll buy her a big present. I asked you to tidy the flat. → I’ll do it in a minute. I think the baby is crying. → I’ll sing him a song. That‘s the doorbell. → Andrew will answer it. Here‘s € 50. → Great, we’ll give a party. Quick! Someone‘s just collapsed. → I’ll call the ambulance. The photocopier‘s broken down. → I’ll get the technician. I need a hand with this shelf. → I’ll get a hammer. II. Possible answers 1) I’m going to lose five kilos. 2) I’m going to go more to the cinema. 3) I’m going to read German books. 4) I’m going to spend more time with my relatives. 5) I’m going to paint the room. 6) I’m going to tidy my room more often.

III. Possible answers


1. Can I borrow your car? ________ by 10 o'clock, I promise. I'll be back

Jedná se o slib, u slibů používáme WILL.

I'm going to be back

2. Can I help you, sir? – Yes, ________ a coffee and a tuna sandwich. Dotyčný si objednává v restauraci, proto používá budoucnost s WILL.

I'll have

I'm going to have 3. Do you know about Claire? ________ a baby! She'll have

She's going to have

Říkáme, že čeká dítě, je těhotná, je to tedy

vyjádření něčeho, co se stane v budoucnosti, založené na něčem, pro co již jsou nyní důkazy – už teď je těhotná. 4. “I'm really tired.” – “________ you home if you want.”

I'll take

Jedná se o nabídku svezení domů, proto budoucnost s WILL. Také to lze

brát jako momentální rozhodnotí, které člověk udělal na základě toho, že ten druhý řekl, že je unavený.

I'm going to take

5. He's got a new job in Boston, so ________ there.

he'll move

he's going to move

Říkáme, že má novou práci a tak se

přestěhuje, je to předpověď založená na tom, že vím o jeho nové práci, nebo to také může být jeho plán, rozhodnutí, které už udělal. 6. What are you doing tomorrow? – I don't know. I think ________ my parents.


I'll visit

člověk si zde není jistý tím, že se to stane, nemá žádný plán, jen říká, co

si myslí, nebo co ho momentálně napadlo, proto WILL.

I'm going to visit

7. Ugh, that food was terrible! I think ________ sick!

I'll be

Jedná se o předpověď založenou na již existujících

I'm going to be

důkazech, snědl něco špatného, je mu špatně a říká, že si myslí, že bude zvracet. 8. ________ new strings for my guitar when you are in town? Thanks.

Are you going to buy

Will you buy

Jedná se o prosbu, proto použijeme

WILL. Zároveň lze říci, že po dotyčném žádáme momentální rozhodnutí: koupíš mi ty struny? ANO/NE. 9. Don't go out now. ________ a thunderstorm. I've just heard it on the radio.

There'll be

There's going to be

Jedná se o jistou budoucnost, je to

předpověď založená na současných důkazech (hlásili to v rádiu, meteorologové to zjistili) 10. I don't think that ________ on Mars.

people are ever going to live

people will ever live

Pouze říkáme svůj názor

o budoucnosti, není to předpověď založená na žádných důkazech či faktech. Pouze názor, proto WILL.


IV. Choose the correct version. Q1 - I feel dreadful; I ____ be sick. am going to will Either could be used here no option Q2 - Tonight, I ____ stay in- I've rented a video. am going to will Either could be used here no option Q3 - If you have any problems, don't worry; I ____ help you. am going to will Either could be used here no option Q4 - I completely forgot about it. Give me a moment; I ____ do it now. am going to will Either could be used here no option

Q5 - Look at those clouds- it ____ rain any minute now. is going to will Either could be used here no option Q6 - The weather forecast says it ____ snow tomorrow. is going to will Either could be used here no option


Q7 - That's the phone- I ____ answer it. am going to will Either could be used here no option Q8 - Thanks for the offer, but I'm OK; Shane ____ help me. is going to will Either could be used here no option Q9 - Where are you going? I am going to see a friend. I'll see a friend. Either could be used here no option Q10 - Tea or coffee? I'm going to have tea, please. I'll have tea, please. Either could be used here no option

V. 2) I warn you that if you see here again, I________your parents. I’LL / I’M GOING TO TELL 3)If we don’t leave now, we_____the train. WE’LL / WE’RE GOING TO MISS 4) If you decide to contact Jane, I_____you her address. I’LL GIVE 5) If you stand in the rain much longer, you __________cold. YOU’LL / YOU’RE GOING TO CATCH 6) He’s seriously hurt. If we don’t get help immediately, he__________. HE’LL / HE’S GOING TO DIE 7) If you want to leave this afternoon, Joe_______________you to the station. WILL DRIVE


8) If you visit Bernard in Vienna, I´m sure you _________very welcome. YOU’LL BE (MADE). Mind map: Possible answers:

Competition Focus Scope Implementation Natural persons Legal persons Trade Act Profit

Bibliography HARMER, J. The Practice of English Language Teaching. Cambridge : Longman, 2001.370. ISBN 978-0-582-40385-5. HELP FOR ENGLISH. Will x Going to. [online]. 2005 - 2013. [citováno 2013-18-6].Available on WWW: http://www.helpforenglish.cz/article/2007053101-cviceni-will-x-going-to. HEWINGS, M. Advanced Grammar in Use. CUP. Cambridge, 2004. 340 p. ISBN 0-521-49868-6. MURPHY, R. English Grammar in Use. CUP, 2004. Third edition. 28 p. ISBN 978-0-521-53762-2. SAYMOUR, J. , POPOVA, M. 700 Classroom activities. Macmillan, 2006. 81, 83. ISBN 978-4050177-6. SCRIVENER, J. Teaching English Grammar. Macmillan, 2010. Third edition. 186, 189, 190, 193, 196, 197 p. ISBN 978-0-2307-2321-4. UE. Printable Handout: Will and Going to. [online]. 2002 - 2013. [citováno 2013-15-6]. Available on WWW: http://www.usingenglish.com/handouts/339.html.

2. CONSTRUCTION COMPANY

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