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

  • Buying bitumen: do you know enough?
    December 2, 2014
    Changes to the way bitumen is produced and traded mean that traditional ways of specifying – and buying - it may not be enough - Frank Albrecht, MD of Albr3cht Supply Concepts, explained why to Kristina Smith Traditionally, we have specified bitumen using two values: the penetration (pen) and ring and ball figures which define the hardness of the bitumen and its softening point respectively. Taking that approach today is risky, warns Frank Albrecht, managing director of Albr3cht Supply Concepts. “It’s not
    Read More
  • Thames Crossing tunnels tendered
    November 13, 2020
    The Crossing will almost double road capacity across the Thames River near London.
    Read More
  • Property issues holding back start of work on Gordie Howe Bridge
    July 19, 2016
    Delays in buying properties in Detroit, Michigan, could hold up construction of the proposed 3.2km Gordie Howe International Bridge that will link the US city to Windsor in Canada. A report by the Detroit Free press said that around 30 of the estimated 900 parcels of land in the city’s Delray district could pose potential problems if owners resist selling the sites to the bridge’s developers. The newspaper noted that Dwight Duncan, interim chair of the Windsor-Detroit Bridge Authority - the Canadian e
    Read More
  • Road markings important for road safety
    February 20, 2012
    Manufacturers are constantly upgrading marking materials and equipment. Now those responsible for highways are being asked to do more as Patrick Smith reports. A recent report claimed that nearly one-third of the length of Britain's single carriageway A-roads have white lines so worn out that they do not meet recognised standards. According to the LifeLines Report, an assessment of more than 2,400km of the road network, Britain's most dangerous roads have the most worn-out centre line markings of all, leavi
    Read More

Highlighted Content