Polish public procurement practices pilloried

Comments by the European Construction Industry Federation (FIEC) have thrown the spotlight on Polish public procurement practices. "We have never ever heard such outspoken criticism about procurement practice and contracting authorities in a single country by so many contractors from so many different enterprises and countries," commented Ulrich Paetzold, director general of FIEC.
November 29, 2012 Read time: 2 mins

Comments by the 6164 European Construction Industry Federation (FIEC) have thrown the spotlight on Polish public procurement practices. "We have never ever heard such outspoken criticism about procurement practice and contracting authorities in a single country by so many contractors from so many different enterprises and countries," commented Ulrich Paetzold, director general of FIEC.

Contractors active in public works contracts in Poland are profoundly worried about the severe deterioration of public procurement rules and practice over the last years. Changes of both the Public Procurement Law and the internationally recognised FIDIC contract conditions have led to a situation considered unfair, counter-productive and unacceptable by the contractors.

"And all of these companies have decades of worldwide experience with public procurement and FIDIC standard forms of contract," added Frank Kehlenbach, director of EIC, the European International Contractors, "but this experience does not help them in Poland, given the reluctance of public clients to perform their part of the job."

Two major highway contracts in particular have resulted in lengthy legal battles. Austrian contractor 1332 Alpine Bau became involved in one torturous court dispute with the Polish authorities. The award of a highway contract to a Chinese firm offering a low bid then precipitated another complex legal case when the firm did not meet targets and had its contract terminated.

A combination of poorly prepared tenders, a generally unfair attitude towards contractors and the non-respect of contractual obligations by public clients not only raises the question of professionalism on the demand side but also leads to a number of concerns regarding Internal Market issues, such as lack of transparency and proportionality, as well as discrimination and freedom to provide services. If this development cannot be stopped and reversed, then this inefficiency in spending European funds could lead the EU to reviewing its funding and lending policies which have provided Poland with almost € 68 billion for investment. At present at least €2 billion is blocked by litigation in the Polish courts and this amount is rapidly increasing.

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