Legal tangle over Polish highway project

The complex legal tangle over Poland's troubled A2 highway project is continuing to develop.
February 29, 2012 Read time: 1 min
The complex legal tangle over Poland's troubled A2 highway project is continuing to develop. The Polish road authority, 1361 GDDKiA, has launched a legal bid for compensation from the Chinese construction firm 2487 COVEC, which had a contract to build a number of sections of the highway. COVEC was hit by spiralling materials costs once work started and was forced to relinquish its contract for the project by the Polish authorities after failing to meet construction deadlines. However COVEC has also launched a counter-suit against GDDKiA for compensation for its losing the contract. The size of COVEC's compensation claim from GDDKiA has not been revealed. However GDDKiA is said to be asking for ?200 million compensation from COVEC. The legal case looks likely to rumble on through the Polish courts for some time. There is also a risk of further or additional action in Europe's courts from other parties involved in this complex legal dispute. COVEC is a subsidiary of 890 China Railway Group Limited.

For more information on companies in this article

Related Content

  • Polish road project in legal dispute
    March 9, 2017
    In Poland a legal case is now underway concerning the A4 highway project. The construction firm PBG has launched a case against Poland’s road authority, GDDKiA. The dispute centres on the stretch of the A4 linking Krzyyz and Debica Pustynia. Also involved in the case are the administrator Aprivia, and the contractor SIAC Construction. The contract to build the section of A4 was lost by the contractors in 2012 and the dispute centres on which body was at fault, with substantial claims for payment being made.
    Read More
  • GDDKiA to call 50 tenders in Poland worth combined €7.65 billion
    May 17, 2013
    Polish road authority GDDKiA has approved the calling of 50 tenders for road construction projects worth a combined US$9.85 billion (PLN 32bn). GDDKiA has decided to allow contractors to carry out changes in one half of the projects supplied by the authority, which will, it says, allow the relations between the investor and the contractor to become more efficient. However, it can also act as an encouragement of the building companies to save on quality. Work on the road construction projects being put up fo
    Read More
  • Polish project hits rocky road
    March 5, 2012
    The project to build a section of the A4 highway in Poland between Brzesko and Wierzchoslawice in the South of the country looks set to hit major legal issues.
    Read More
  • FIEC aims to tackle lowest possible cost bidding
    February 28, 2012
    The FIEC, the European construction industry federation, aims to end unfair competition by state-owned and state-aided enterprises across the globe.
    Read More

Highlighted Content