Behavior of investors and price for construction works Cover Image

Analiza zachowania inwestorów w odniesieniu do kryterium ceny za roboty budowlane
Behavior of investors and price for construction works

Author(s): Jarosław Górecki, Jadwiga Bizon-Górecka
Subject(s): Economy
Published by: Wydawnictwo Uniwersytetu Ekonomicznego we Wrocławiu
Keywords: construction project; procurement; price; project cost risk

Summary/Abstract: The article is a part of a widespread discussion about public procurement and its criteria. In Poland, the main criticism had been made to the common use of the lowest price criterion in the best tender procedures for public contracts regulated by the Public Procurement Law. According to the newest version of the Act of Public Procurement Law (from 19 October 2014), a contracting authority ought to consider also other criteria relating to the contract except the lowest price criterion while choosing the best tender. It was indicated that a prediction of the cost of construction investment projects becomes the major risk area of such projects. Some specific sources of the project cost risk should be considered by both the investor and the contractor. In order to indicate the behavior of investors of the construction investment projects and their attitude towards the lowest price criterion, the results of study on the procedures of the revised Public Procurement Law were presented. Despite a necessity of considering multiple citeria relating to the contract, in most cases the lowest price criterion still seems dominant. According to the survey, 88% of the analyzed tenders resulted in the selection of the lowest bid as a best tender.

  • Issue Year: 2016
  • Issue No: 450
  • Page Range: 172-181
  • Page Count: 10
  • Language: Polish
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