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

  • Strabag wins Poland S7 dual carriageway tender
    June 17, 2014
    Strabag consortium has won a tender for the construction of a 4.5km S7 dual carriageway section in the eastern part of Krakow, Poland. The investment will also include the construction of a bridge over the Vistula River. The gross value of the offer made by Strabag reached almost €127.93 million (PLN 529 million), which is less than the budget of the investor set at PLN 610.3 million. In total nine offers have been submitted in the tender. All bidders offered a ten-year guarantee and a 27-month deadline.
    Read More
  • Poland plans push-starting project
    February 28, 2012
    In the wake of the difficulties in Poland over the withdrawal of Chinese contractor COVEC from the A2 highway project, the country's government is now looking for a way ahead.
    Read More
  • Deal struck for Poland's A2 highway
    February 27, 2012
    Work on two sections of Poland's A2 highway originally planned to be built by the Chinese COVEC will now be constructed by two consortia.
    Read More
  • Contractors win Polish road tender
    August 13, 2015
    Two contracts have been awarded for work on sections of Poland’s S7 dual carriageway. Contractor Metrostav has won the tender process for the construction of a stretch of the S7 dual carriageway. The 20km section of the route Metrostav has the contract for lies between Gdansk's southern ring-road and Elblag. The value of this project is anticipated as being in the region of €392 million. Meanwhile contractor Budimex was won the package of works for the second section of the S7 dual carriageway. This 19km lo
    Read More

Highlighted Content