The Polish national roads authority 1361 GDDKiA has said that it will no longer look for the cheapest offer in road-building tenders. Instead, it will, in line with 1116 European Union requirements, consider whole life cycle factors such as durability, cost of exploitation and quality.
Poland has long been criticised by the road construction industry, both within the country and in the rest of Europe, for handing out tender wins to the lowest bidder with scant regard for life-cycle costs. The government has also been heavily criticised for refusing to negotiate with winning contractors when unforeseen issue push up construction costs.
3260 World Highways <%$Linker:2 Internal <?xml version="1.0" encoding="utf-16"?><dictionary /> 2 2988 0 oLinkExternal reported in mid 2011 Visit WH Story Page false /sections/general/news/polish-project-causes-further-legal-headaches/ false false %> that Chinese contractor China Overseas Engineering Group Co (2487 COVEC) had appealed against a decision made by GDDKiA to cancel the contract that Covec had to build a section of the A2 highway between Warsaw and Lodz. Covec's tender win was a landmark decision, the first time a Chinese firm had won a major construction contract in Europe. The firm won the tender process for the 50km highway with a bid so low that it caused some bidders to complain about undercutting.
Covec’s problems started soon after work started when material prices spiralled upwards. Delays mounted as did complaints from local sub-contractors over non-payment by the main contractor. Covec withdrew from the project in May 2011.
Despite the GDDKiA announcement that it plans to adhere to EU procurement law, the government agency remains besieged by construction firms locked in legal battles over how they have been treated. According to one news agency, the companies claim billions of euros are owed to them by Poland. Polish contractors have said some of them have gone to the wall because of lack of payment by the government. Six European governments have complained to Poland about the treatment meted out to private companies.
The GDDKiA’s also said its Podlaskie regional unit will spend around $228 million on road projects in 2015, up from $166 million last year. Among projects earmarked for completion are ring roads around Szczuczyn and Barglow, as well as the S8 section between the ring road of Zambrow and Mezenin.
Poland has long been criticised by the road construction industry, both within the country and in the rest of Europe, for handing out tender wins to the lowest bidder with scant regard for life-cycle costs. The government has also been heavily criticised for refusing to negotiate with winning contractors when unforeseen issue push up construction costs.
Covec’s problems started soon after work started when material prices spiralled upwards. Delays mounted as did complaints from local sub-contractors over non-payment by the main contractor. Covec withdrew from the project in May 2011.
Despite the GDDKiA announcement that it plans to adhere to EU procurement law, the government agency remains besieged by construction firms locked in legal battles over how they have been treated. According to one news agency, the companies claim billions of euros are owed to them by Poland. Polish contractors have said some of them have gone to the wall because of lack of payment by the government. Six European governments have complained to Poland about the treatment meted out to private companies.
The GDDKiA’s also said its Podlaskie regional unit will spend around $228 million on road projects in 2015, up from $166 million last year. Among projects earmarked for completion are ring roads around Szczuczyn and Barglow, as well as the S8 section between the ring road of Zambrow and Mezenin.
