The Invisible Framework: the role of cultural differences in international industrial projects

6 October 2025

International industrial investments have become a regular feature of the Hungarian construction sector. Every month, new industrial facilities are built and production capacities expanded in Hungary. While technical excellence is essential, cultural awareness is just as critical. Project success depends on how well we can align diverse business ‘cultures’ from communication styles and decision-processes to different attitudes toward risk. As a full-service EPC partner (engineering, procurement, construction), Lakógép doesn’t just build — we bridge cultures by integrating expectations, processes, and local specificities into a shared way of working.

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Why is it important to understand cultural differences?

In large-scale investments, misunderstandings can be costly. In an industrial real estate project, something as small as an unclear drawing reference or ambiguous decision-making authority can result in days of lost progress. However, cultural differences only become a disadvantage if we treat them as obstacles. At Lakógép, we see culture as the invisible framework of collaboration; a structure that fundamentally shapes how stable and successful a project will be.

Since most of our projects involve international partners, we’ve developed a unique perspective on this. Different cultures organize work in different ways: in some, rules and precision dominate, while in others, personal trust and hierarchy are key. These operational styles are clearly visible in day-to-day project work — and the Hungarian approach often needs to strike a balance between the two. When we recognize these differences in communication and decision-making logic, processes run more smoothly, and project delivery becomes more predictable and easier to manage.

Structured, document-driven operations – the European approach

In large-scale European corporate projects, especially with German, Austrian and Swiss (DACH) investors, accuracy and traceability are paramount. Decisions are made following thorough preparation and then executed consistently. In practice, this translates into plans with revision numbers, change management logs (RFI/Variation), transparent reporting, and clearly assigned responsibilities and deadlines at the end of every meeting. Keeping order in the details builds trust and reduces the risk of costly misunderstandings and rework.

Hierarchical, trust-based operations – East Asian experience

In trust- and hierarchy-driven operations – typical of East Asian companies – both personal relationships and formal approvals carry significant weight. Short, visual decision-preparation materials work well; final approvals are typically made at the senior executive level. One especially effective approach is to present options-based” proposals: 2-3 possible alternatives, each outlining the impact on cost, time and quality. The region is currently highly active in industrial investments along the battery value chain. At Lakógép we’ve contributed to this momentum through multi-phase projects — including for Samsung SDI’s Hungarian operations.

Bridging the approaches – the Hungarian approach between the two logics

Successful Hungarian teams combine the strengths of both worlds: precision on paper, speed on site. Our role is twofold: we translate international standards into the realities of local authorities and suppliers and translate local realities back into the language of international decision-makers. The result is a coordinated, fast-moving project ecosystem that operates across cultures, where flexibility becomes a key advantage. As Lakógép’s founder, Patrik Palai, put it when appointing a new managing director: “The community of values is already there.” At Lakógép, this shared foundation is why we treat cultural differences in projects not as obstacles but as resources.

Three practical guidelines for everyday collaboration:
  • Shared vocabulary and document discipline: project codes in subject lines, standardized abbreviations and drawing versions, action lists with responsibilities and deadlines at the close of meetings.
  • Decision-making map: who decides what, based on which inputs, and within what timeframe? A clear decision-making pathway helps accelerate formal approvals rather than slow them down.
  • Rhythm of change management: pre-agreed templates, cost–time impact analysis, three-level scheduling (master plan, 3–6-week breakdown, daily plan), and weekly status reports (progress, risks, decision needs, next steps).
 
Quality, suppliers, handover

Clarifying quality expectations through mock-ups, sample sections and approved checklists helps prevent misunderstandings and costly rework. On the supplier’s side, prequalification and predefined switching rules are essential: if a manufacturer cannot deliver on time, construction does not stop, it switches to a pre-approved alternative of identical quality. Handover becomes faster and smoother when deficiencies and defects are documented in a punch list with clear responsibilities and deadlines assigned.

The formula for success

Cultural differences are not a “necessary evil”, but they are a source of competitive advantage. By combining structured precision, trust-based agility, and the Hungarian strength in pragmatic, field-driven problem-solving, industrial property developments in Hungary can be delivered faster, more predictably and at higher quality. This is where Lakógép excels: for us, systems thinking and solution-oriented mindset are not just slogans, they are daily practice. Thanks to this approach, many of our partners continue to return to us for their most important projects in Hungary.

We are specialists in the construction of industrial properties.
Lakógép 2024. All rights reserved.

Construction of industrial real estate
specialists in the construction of.

Lakógép 2024. All rights reserved.