Budimex fears the return of a price war in Polish road market

Major Polish construction company Budimex has said that only one out of its 15 road tender bids submitted this year to the Polish General Directorate for National Roads and Motorways (GDDKiA) has had the lowest price. In 2014, its bidding effectiveness stood at one in four. Budimex said it is concerned that a price war is returning to the Polish construction market. Differences in the prices proposed by bidders are huge and that prices offered by its rivals are too low and are unrealistic. It has b
May 7, 2015 Read time: 2 mins
Major Polish construction company 3302 Budimex has said that only one out of its 15 road tender bids submitted this year to the 3519 Polish General Directorate for National Roads and Motorways (GDDKiA) has had the lowest price.

In 2014, its bidding effectiveness stood at one in four.

Budimex said it is concerned that a price war is returning to the Polish construction market. Differences in the prices proposed by bidders are huge and that prices offered by its rivals are too low and are unrealistic.

It has been confirmed by National Congress of Governors or Road Districts (Ogolnopolski Kongres Drogownictwa) that tender prices are lower so far this year than in 2014.

The GDDKiA is by law allowed to question bids which are more than 30% below the estimated value of a project.

Meanwhile, a consortium of Toto Costruzioni and 2589 Vianini Lavori has won a tender to build a 16km road between the S5 dual carriageway and the A2 motorway.

The value of the bid is around €131 million, which is less than the investment's budget set at nearly €159 million.
Finance & Funding

For more information on companies in this article

Related Content

  • Ukraine adopts international pricing standards
    December 14, 2022
    Despite the ongoing war, the country is moving ahead with contractual reforms for road works in line with western European norms, according to UNITE, the Ukrainian Infrastructure Association, a non-government agency.
    Read More
  • ASECAP: maintenance mindshift turns spending into investment
    August 4, 2017
    With an estimated value of €8 trillion, the road infrastructure is probably the European Union’s largest single asset. It accounts for 83% of passenger journeys and more than 70% of freight movement. Despite this importance, global investment in roads - especially maintenance - has fallen, said Christophe Nicodeme, European Road Federation secretary general. There are grave consequences, noted Nicodeme in his opening keynote address to the recent Study and Information Days gathering, an annual event for mem
    Read More
  • Harsh winter weather impacts on road surfaces
    February 27, 2012
    With warmer weather now spreading across the Northern Hemisphere, the impact of a second successive harsh winter can finally be seen on the roads of many nations. The transport links of many countries were affected badly by tough winter conditions. From the US to Russia and the 27 European Union members, heavy snow blocked roads and led to endless delays.
    Read More
  • Fayat president is positive for business outlook
    January 6, 2017
    As a major presence in the construction sector, the Fayat Group is well-placed to understand the current market conditions. President Jean-Claude Fayat revealed that the firm does have a strong insight into the state of the international market, as well as some key developments for 2015. With much of its operation based in Europe, the company has been affected by the currency situation.
    Read More

Highlighted Content