Poland’s leading construction companies are set to meet next month to discuss ways to put an end to sector’s escalating price wars. More than 90 percent of Polish construction companies are fighting to stay afloat as price wars continue to rage, the daily Puls Biznesu reports.
According to a global survey conducted by Simon-Kucher & Partners, 58 percent of respondents admitted to participating in price wars. In Poland, the figure is close to 90 percent. Only 5.5 percent of Polish respondents, however, admitted to triggering a price war, while as much as 89 percent blame their competitors.
“From what we’re observing, the pressure from general contractors to reduce costs is increasing. This includes both public and private investments,” Tomasz Michalski of Keller Group told the daily. “The price of a contract often don’t cover the costs of materials or employment, which is not in compliance with health and safety laws, which is hurting the quality of work.”
