Bids, problems and money. How did the war in Ukraine affect road investments in Lublin?

  • After the recent tenders, the impact of the war and price hikes can be seen. Can you predict today that the situation will get worse in this regard?

– Recent tenders for the construction of the S17 road between Zamość and Hrebenn are optimistic. Over the course of a few days, we opened bids on three tenders for adjacent sections of S17. For the first show, Zamość East-Zamość South, only one show was included in the GDDKiA budget. The other seven shows were higher, one of which slightly exceeded our budget. In the next opening, for the Zamość Południe-Tomaszów Lubelski department, three of the nine shows were below our budget. Monday’s opening, Tomaszów Lubelski-Hrebenne, brought in four bids in our budget out of the eight that were bid.

As you can see, the number of offers under budget has been increasing. This is good information in contrast to what has recently been heard in public. The extra time we gave the contractors to prepare the optimal bids was not wasted. We continue to work and carry out our plans as planned.

  • Will we be able to quickly select a contractor for the bridge in Łęczna, is it necessary to announce a new tender?

– With the amount that we can allocate for the implementation of this investment, ie 43.2 million PLN, there are a total of seven offers. Bidding procedures are underway and after analyzing the offers, we will announce the re-selection of the most advantageous offers. We will not announce a new tender unless the remaining bidders refrain from signing the contract.

  • Are other bidders in this tender today offering different prices than those offered in the bid?

– According to the Public Procurement Law, contractors cannot suggest other prices in the same bid than they submitted when bids were opened. After the selected company finally decides not to sign the contract, we check whether other companies are ready to build the bridge for the amounts offered in the procedure.

  • What is the biggest price problem for the market? Fuel, steel, or other materials?

Road investment contractors tell us about different types of problems. Among other things, the fact that the war in Ukraine affected the availability of workers from that country. However, the number of workers on construction sites is changing all the time. It depends on the work in progress. The contractor complements any staffing shortage with other employees or companies.

Contractors also report to us about problems with access to steel, among other things, but this, however, does not currently have a significant impact on the timing of the work performed. This is evidenced by the fact that in the second quarter of this year we want to open a section of the S19 motorway between Niedrzwica Duży and Kraśnik, which is currently the largest road investment in the region.

Work in full swing. Fuel, aggregate, asphalt and concrete are available. It is too early to determine the actual impact of the war in Ukraine on road investments in Poland. In the current situation, the most important thing is to remain calm and not make irrational decisions. The most important thing is that we can continue to operate and make investments. We listen to the opinions of companies in the construction sector and analyze potential scenarios on an ongoing basis.

  • Chinese companies are bidding for S17. We had serious problems with them a few years ago. Can the situation repeat itself?

– Stecol from China submitted bids for the construction of the S17 road between Zamość and Hrebenn. These actions are underway, and our task is to select the most advantageous offers so that the entire investment is completed at the highest possible level and in a timely manner. Stecol is making two investments for GDDKiA. It is building a section of the Western Bypass of ódź along the S14 and A2 section in the Mińsk Mazowiecki-Siedlce section.

  • What guarantees are there for subcontractors to main contractors in a situation where they do not want to pay for the work?

In order to meet the expectations of local entrepreneurs, GDDKiA has developed solutions that secure subcontractors for business, services and supplies. These mechanisms are included in contracts signed by GDDKiA with general contractors. This includes the possibility of paying amounts owed to subcontractors who have not been paid by unreliable contractors for work performed.

In accordance with the concluded contract, the contractor is obliged to settle payments for the completed and accepted works. Only after providing proof of payment to the subcontractors shall he be entitled to apply for payment from the GDDKiA. The absence of this evidence stops the payment of the award to the contractor. At the same time, we invite the contractor to settle the amounts owed to the subcontractor. If this is not done, then after a prior analysis of the documentation, we make a direct payment to the subcontractor, deducting the amount from the contractor’s fee.

We also have the option to impose contractual penalties on a contractor for non-payment of subcontractors. For these mechanisms to function, subcontractors must, however, remember and take care of formalities so that they can intervene effectively. First of all, they must perform only those works, services or supplies that are expressly indicated in the contracts concluded with contractors. If they do work outside the scope of the contract, they do so at their own risk. Contractors must remember the duty to report subcontractors and their contracts to GDDKiA.

  • What are the causes of problems on the S19 in the Lublin-Lubartów department? Was the ZRID app a long time ago?

– Within the planned route there is an integrated development, there is also the Lublin-Parczew railway with a railway station, there are also protected protected areas. Let me remind you that we are not only building a highway, but also roads to handle local traffic for local people, which is a very important component of this investment. Everything must be reconciled.

Additional design work has to be carried out and therefore arrangements with the various institutions have to be obtained. It is taking a long time, and therefore we are planning to file a ZRID order in the last quarter of this year. This kind of situation happens with big investments like building a highway.

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