Era of cheap road construction ending for Czech government

14 June 2018

The Czech Highway Authority (RSD) is wrapping up a tender for the southeastern portion of the Otrokovice bypass. The estimated price for construction of the 3 km section of the road was CZK 795m but the winning tender, submitted by Eurovia, was just CZK 709m, according to the server zdopravy.cz. Strabag placed second in the tender with a bid of CZK 775m, while Hochtief came in third with its bid of CZK 847m. The zdopravy.cz server reports that the bids suggest that the era of drastic price cuts has ended. Eurovia’s bid was just 11 percent less than the expected price and only one other bidder offered to complete the work for less than the estimated price. In the past, bids have tended to drastically undercut the RSD’s estimated price. “The evaluation commission will evaluate the bids now and give its recommendation,” said RSD’s spokesman Jan Rydl. Construction is expected to start this year and be completed by 2021.

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