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.
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