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

  • Morocco's road programme boosts economy
    February 9, 2012
    A major road programme instigated by King Mohammed VI of Morocco is helping to boost the country's economy and modernise infrastructure. This forms part of a plan to boost tourism, a key part of the country's income from 8 - 10 million. There were less than 300km of motorways existing when King Mohammed VI inherited the throne from his father in July 1999. Since then, the figure has increased to over 1,000km and this is set to almost double in the next five years. A hugely significant highway programme was
    Read More
  • Innovations introduced to optimise milling
    September 28, 2015
    New developments for the milling machine sector should help optimise performance, as well as increase health and safety standards for site personnel Advances in the milling machine market generally focus on new models being available or developments to drums and cutters. However some rather different developments are taking place that could well deliver long-term improvements for health and safety as well as the quality of work carried out, optimising milling operations. Earlier this year, new guideli
    Read More
  • Stonehenge Bypass contract awarded to consortium
    October 3, 2022
    The Stonehenge Bypass contract has been awarded to a consortium.
    Read More
  • Tampere road tunnel - a strategic link for central Finland
    April 4, 2016
    Progress has been good for an important underground road link in Finland reports Adrian Greeman. Assuming all goes well, the new Ranta, or Lakeside, tunnel in Tampere will open in full six months early; traffic could be running by the end of this year. Work on transforming the rundown city centre with new developments will get a major boost. It is a major achievement on a four-year-long project bringing significant benefits to one of Finland's largest cities. From the government's point of view the scheme w
    Read More

Highlighted Content