Risks of investment projects implemented under public procurement in Poland

Abstract

Objective: The purpose of this article is to present, first, the main causes of contractual risk associated with infrastructure projects implemented under public procurement law in Poland, and second, the tender strategies used by construction companies. Against this background, the latest European Union regulations on the protection of domestic construction companies, in line with the idea of ‘local content’, are also presented.

Material and methods: The study mainly uses the method of analysis and evaluation of primary data on completed and ongoing tender procedures for the implementation of public infrastructure projects posted on the electronic tender platforms of the General Directorate for National Roads and Motorways and PKP Polskie Linie Kolejowe S.A., as well as on the EU tender platform.

Findings: The results of the research clearly indicate that the construction sector is highly susceptible to economic fluctuations and the associated availability of investment financing sources. An interesting observation is that contractors bidding for investment projects adapt to prevailing market conditions, which is reflected in the lowering or raising of bid prices depending on the level of competition, as well as the implementation of legal tools aimed at protecting the domestic construction market from the often aggressive strategies of companies from countries outside the European Union.

Research limitations: The databases used on tender procedures are not always complete and up to date, and therefore have their limitations in terms of information.

Research implications : The presented analyses imply the need for a broader study of the impact of economic fluctuations and external conditions on the (in)stability of entities in the construction sector and the effectiveness of introducing instruments to protect domestic entities against aggressive competition from third-country companies