Pawelec adds that another group of companies that will be doing well on the market will be those that can organize more demanding projects. – "From the point of view of the measures introduced after the pandemic, the Polish market is perceived as one of the most stable" - he stresses.
What are the risks?
– "Banking specialists used to regard the sector of road construction as passé and involving a higher risk, which was reflected in large margins on all types of loans. Companies operating on the Polish market have often had trouble obtaining guarantees, even now. International companies have enjoyed greater support of domestic banks and in their case it is much easier to obtain guarantees. We are in the process of negotiations with banks to change the approach of the banking sector to public investments to a more flexible one, as they are the only guarantee of the continuous supply of orders" - states the acting General Director of the General Directorate for National Roads and Motorways. – "The observed shrinking of the private sector (e.g. real estate development, construction of shopping malls), will shift emphasis to public investments. As a result, the financial liquidity of companies may be upset. Even now many large international corporations refuse to accept a contractual advance from us. We will discuss the possible reasons for this situation" – says Tomasz Żuchowski.
Jakub Pawelec, J.D., emphasizes, in turn, that unsuccessful contractors, who are not able to finance their projects, should not be present on the market. – "It is good that the General Directorate for National Roads and Motorways is carefully checking new entities" - he says.
– "Healthy competition on the market and the presence of experienced entities that can introduce new stimuli are of prime importance. One of such entities is KOLIN, which has experience in various challenges. New players have a chance to prove themselves, provided that they are able to convince the ordering parties of their reliability and experience, and that they will not disappoint them during the execution of the contract" - indicates the adviser to the management board of KOLIN.
Prices have dropped
Tomasz Żuchowski addresses the subject of price variability proposed by the contractors, comparing the concept to riding a camel. – "We go up and down, up and down. We currently have a low price trend in terms of the offers submitted. We are closely monitoring it and analysing the risks. Low prices should always arouse suspicion, such as, for instance, an S category road, evaluated six months ago at PLN 43 million per kilometre, and evaluated at PLN 10 million less in the offers submitted now. What has changed since March that the cost of the road per kilometre has dropped so much. 25 percent is a lot. I would not like us to repeat the same mistakes over and over again with contractors who exaggerated with their low prices. It is puzzling that nowadays we are breaking records in terms of dumping prices - he says.
Jakub Pawelec indicates that a pragmatic approach to the project allows for lower prices. – "I cannot imagine a situation like the one in 2011-2012, when some contractors failed to carry out the undertaken motorway projects. It is important to wisely choose who you want to work with. The key to the cost-effective implementation of the project is to find support in Polish subcontractors, engineers and technological facilities" - he emphasizes.
