The Tender Procedures as a Response to Resource Price Increases on the Example of Tram Investments in Wrocław
Year: 2024
Type: article
Abstract: European Union institutions use public procurement contracts to purchase services, works, and goods through tenders. The purpose of public procurement is to ensure fair competition, which makes it extremely important to the economy. Public procurement may be awarded in several modes. Conducting a tender procedure, including preparing all necessary documents, placing an advertisement, and selecting a contractor, is a tedious and long-term process. 2022 brought increases, which significantly influenced the previously planned investments. Increases in prices were noticed in the area of raw materials and construction materials as well as in the costs of construction works. Such rapid changes were impossible to predict and, therefore, had an impact on the condition of budgetary units. It was necessary to analyze the problem and find a way to make investments in the face of new prices. An unusual contractual provision was used (option right), whose application has not been described for tender procedures in other European Union countries. Three examples from the implementation of tram investments in Wroclaw were described. The advantages of the option law in the context of implementing engineering tasks were described and analyzed.
Source: Transport Problems
Author: Magdalena SKIBA
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: gold
Estimated APC paid: $377
OpenAlex ID: W4405145628