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

  • Kenya port suspension bridge project makes progress
    January 15, 2019
    A new suspension bridge in Kenya’s key port city, Mombasa, will help unlock potential – Shem Oirere reports Plans for the construction of a US$200 million suspension bridge in Kenya heva moved a notch higher. The country's urban roads agency recently announced the shortlisting of three bidders for the design, finance, construct, operate, maintain and transfer public private partnership (PPP) contract model. Kenya Urban Roads Authority (KURA) is a state agency that manages, develops, rehabilitates and mai
    Read More
  • Italian road maintenance contracts for Cossi Costruzioni
    March 22, 2022
    Italian contractor Cossi Costruzioni will work on a major road maintenance package.
    Read More
  • Road user charging, the way to highway investment?
    February 27, 2012
    Tough political decisions have to be made to ensure highway investment - *Dr Max Lay reports
    Read More
  • Road user charging, the way to highway investment?
    April 12, 2012
    Tough political decisions have to be made to ensure highway investment - *Dr Max Lay reports Our road systems and how we use them have changed dramatically over the last few centuries, and yet some problems persist and others reappear. For most of human history roads have been used by foot traffic and by cumbersome wagons hauled at walking pace. Roads were built to provide some obvious advantage in commerce or conquest. They were then grudgingly maintained by those who might gain some advantage from the
    Read More

Highlighted Content