Price wars to continue for at least two years on the Polish construction market - November 2011

Steady deterioration in construction and the expected decrease in the number of orders from the public sector force construction companies to continue to compete on price in tender procedures. According to construction companies’ representatives, this practice can last until the end of the current EU budget perspective. Adverse consequences of this policy will be felt by all participants of the investment process, including customers.

In connection with the disconcerting trend of concluding contract at prices below the investor’s cost estimate, in the fifteenth wave of the survey of high-level professionals from the management and operating divisions of 200 largest Polish construction companies, which was conducted for the purposes of report “Construction sector in Poland H2 2011 – Comparative regional analysis and development forecasts for 2011-2014”, we asked the surveyed companies about the performance of contracts secured in the period of strong price pressure.