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

  • Milling machine developments to boost efficiency
    October 20, 2016
    A series of developments in the milling machine market will give customers both greater choice and performance – Mike Woof writes. Competition is heating up in the market for milling machines, which has been dominated for many years by Wirtgen. The German firm still retains a strong share of this market, but is now facing much tougher levels of competition from key rivals, and Atlas Copco, BOMAG, Caterpillar and Roadtec in particular. Meanwhile the market is also seeing the return of another familiar nam
    Read More
  • JP Autoceste eyes 2020 as completion date for Bosnia’s Corridor 5c
    March 3, 2016
    Around two-thirds of the Corridor 5c motorway project is expected to be completed by 2020, according to the director of the Bosnian motorways company JP Autoceste. Jasmin Buco said that 120km out of 337km of the motorway are complete. The corridor section, to connect Budapest with Ploce port in Croatia, is taking the most time. He said that the cost of the remaining part of the motorway is expected to be around €2.81 billion.
    Read More
  • Shell’s John Read explains “adaptable bitumen” developments
    December 15, 2016
    Shell’s highly innovative bitumen and asphalt solutions are helping create future-ready urban road networks around the world to meet the needs of today and tomorrow. Shell’s general manager of bitumen technology, Professor John Read, takes a look at some of the company’s game-changing ideas. The next 30 or so years will see a significant transformation in the way we live. Whereas almost 75% of the world’s population lived in rural locations in 1950, around 75% will live in cities by 2050. The global popu
    Read More
  • Market gains are expected for tyre pressure monitoring systems
    December 13, 2012
    A new report by research body Frost & Sullivan says that growing replacement volumes are boosting demand for tyre pressure monitoring technology in Europe and North America. Laws requiring the installation of tyre pressure monitoring systems (TPMS) in new vehicles are leading to an increase in the installed base of this technology in the European Union (EU) and the United States. With the proliferation of universal sensors and aggressive efforts to raise consumer awareness, the TPMS aftermarket is set for r
    Read More

Highlighted Content