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

  • Progress on Serbia’s Zezeljev bridge replacement is slow
    August 30, 2017
    Construction of the Zezeljev rail and road bridge across the Danube River is facing further delays, according to the Serbian government. Work on the 470m-long new bridge was supposed to be finished by this month. But national elections and changes of government have hampered progress, Serbian media have reported. The original bridge was completed in 1961 as a single-track railway line and separate roadway between the cities of Novi Sad and Petrovaradin. NATO attacked the structure five times during its camp
    Read More
  • Alberta’s peaceful partnership
    May 4, 2020
    A bridge project in northern Canada threw up some unexpected challenges, reports David Arminas, from the banks of the Peace River in Alberta
    Read More
  • Brazil launches Projeto Crescer privatisation plan
    September 21, 2016
    Motorways are among the 25 infrastructure projects that Brazil’s new president, Michel Temer, intends to privatise in an attempt to revive the flagging economy. Other projects in the Projeto Crescer - Project Growth – plan include airports, rail lines, sewage systems, energy distributors and gas and oil fields. All the projects should be in majority private hands by 2018, he said during the announcement. “We will increasingly show that the government cannot do everything. We need to have the presen
    Read More
  • D11 motorway in Czech Republic could be completed after over 17 year land dispute
    March 6, 2013
    A land dispute that has stalled the completion of the D11 motorway in the Czech Republic for more than 17 years is reportedly nearing its end. The Czech road management firm RSD has applied for planning permission to build the D11 between Prague and Hradec Kralove omitting the disputed land. But it’s reported that the Transport Ministry is looking to come to an agreement with the owner of the last outstanding bit of land on the originally proposed D11 route, which will allow the preferred route to be comple
    Read More

Highlighted Content