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

  • Trading on carbon markets
    August 2, 2012
    Anticipating new trends, IRF is organising a panel discussion on this promising and fast-growing market during the 2nd International Roads & Environment Conference Signing the declaration on Energy, Security and Climate Change in Hokkaido, Japan, during the last G8 meeting, 17 leaders of the world's major economies have underlined the potential of appropriate market mechanisms when looking for global solutions in the fight against climate change. Emissions' trading is one of the options and certainly the in
    Read More
  • Rajasthan Mega Highways boost trade, tourism
    February 17, 2012
    Rajasthan is one of the most favoured tourist destinations of India for both domestic and international traffic on account of its rich array of historical forts, palaces, art and culture.
    Read More
  • Rajasthan Mega Highways boost trade, tourism
    April 12, 2012
    Rajasthan is one of the most favoured tourist destinations of India for both domestic and international traffic on account of its rich array of historical forts, palaces, art and culture. In terms of area, Rajasthan is the country's largest state. Its size and strategic location means that it is traversed by substantial traffic linking the neighbouring states to the north and south. The National Highway (NH) road corridors currently accommodating this traffic are the NH-8, NH-11, NH-12, NH-14 and NH-1
    Read More
  • Mostostal Warszawa picked for S19 segment
    August 11, 2022
    The contract in northern Poland is worth around €211 million.
    Read More

Highlighted Content