Media commentary

KHL | Poland still faces risks

03 Apr 2019

Construction industry research specialist Spectis said that loss-making contracts whose prices were set at the time of increased competition would still be pursued and billed in 2019 and 2020. It forecast, however, that fewer of them would be active, and that backlogs would start mostly to consist of contracts that were valued more conservatively.

Bartlomiej Sosna, construction market expert at Spectis, said that in most cases, general contractors had learnt the lesson from the investment boom on the eve of the Euro 2012 football competition.

“The growth of bid prices recently observed is capable of offsetting increased costs of construction companies” said Sosna. “Moreover, in some cases high-priced contracts of today can generate above-average margins in two or three years’ time, provided that building material prices finally decrease after upward price movements, just as was the case in 2015.”

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