Central and local authorities have more and more reasons to count on a mild winter. Excessive temperatures can reduce the costs of not only insulating homes and apartments. They will also be significant in terms of spending on winter road maintenance. Like no snow, rain or sleet.
The rest of the article is under the video
See also: 9.50 zlotys of diesel? The government is preparing changes that will hit the Poles hard
The 2022/2023 Winter Campaign will become more expensive than anything else
High expenditures will affect both the General Directorate of National Roads and Highways, that is, simply put, the central authorities and local governments. GDDKiA, with the approval of the government, has increased the indexation limit for long-term winter road maintenance contracts to 10%.
– Our common goal is not only the effective implementation of business, but also Maintaining a good state of maintenance companies and the entire Polish economy. Therefore, in dynamically changing market conditions, we are taking appropriate measures to achieve this goal, – said Thomas Schuschowski, Acting General Director of GDDKiA.
Approval of the increased level of valuation as a result of, among other things, with High fuel prices and labor costs – Including the minimum wage and wage increases employers have demanded because of record inflation for a quarter of a century – or Road coating materials.
In the latter category is salt, which is commonly used to combat black ice. Access to it is limited due to the disruption of supplies from Belarus and Ukraine. – Last year the average price of salt was 200 PLN per ton, now it is 500 PLN – says money.pl Barbara Dzieciuchowicz, President of the Polish Chamber of Commerce for Roads (OIGD).
“Winter work” in Lodz is up to 60 percent more expensive.
Raising the level of the index by GDDKiA to 10 percent, according to the head of OIGD, although positive, will only allow companies to limit losses from the market situation after the outbreak of the war in Ukraine. It is worth noting that the contracts with the General Directorate have Usually large and larger companieswhich are better financially secured than smaller builders.
Local businesses that rely on local government orders usually ask for much higher raises from municipalities. We have written several times in money.pl that their situation is very difficult, because many local government investments have been frozen or restricted as a result of price hikes everywhere. They can no longer contribute to the “winter work”.
Local governments have experienced this painfully, as contracts for snow removal or street sanding have expired before this year’s winter period. An example is Lodz, whose officials signed a contract on winter maintenance of public roads (main roads) on September 30th. There, costs have risen by as much as 60%.
Increase in costs from PLN 700,000 to PLN 1.7 million
Lodz, when it comes to winter street maintenance, is divided into several regions. Separate bids were submitted for each. Finally, the average rate of salting 1 km of road in the 2021/22 season is 232.2 Polish zlotys Total, and the previous season – 144.98 zlotys.
On the other hand, the plowing and salting service increased from PLN 161.21 total / km up to PLN 244.08.08 PLN. The snow removal rate on the sidewalks increased from a total of PLN 0.18 per square meter to PLN 0.25. Interestingly, On the other hand, the same tillage rates decreased – From PLN 57.58 total / km in the 2021/2022 season to PLN 40.04 in the winter of 2022/2023.
Lodz pays the road workers upon departure. Thus, it has every right to count on a warm and dry winter. Krakow responded to money.pl that the costs of snow removal and street excavation have increased by several percent. In the case of Poznan, it’s an increase by about 9 percent
Smaller cities will also have to dig deeper into their budgets. Zgierz will pay about PLN 1.7 million for road maintenance in winter 2022/2023 (for a period of seven months) and cleaning thereafter. Last winter, he was contracted for the maintenance of the streets in the amount of 700,000. zlotys.
Local governments don’t want to risk losing control of the roads
The above examples show local governments having to announce “winter campaign” tenders in a year of record inflation. However, this does not mean that the increase in costs will exceed those communes that have long-term contracts with road construction companies, for example in 2020. The regulations, which took effect in November, allow them to value these contracts.
Information from road companies associated with OIGD shows that most local governments do not want to risk contract termination by the contractor, which is why they are negotiating an increase in the value of winter road maintenance contracts. But not everyone.
The Wroclaw City Council told money.pl that this season it is based on last year’s prices. There will be no valuation in the capital of Lower Silesia, which means that the office will pay an average of more than PLN 90,000 for a single trip of equipment to snow-covered roads and slippery roads. zlotys.
A big risk for local governments
Barbara Dziczewicz claims that local governments that refuse to raise prices in the “winter campaign” are acting shortsighted. – These are mostly contracts with local companies that pay taxes and create jobs for them – comments the Chief of the Office of Inspector General for Development.
The head of the Polish Roads Chamber of Commerce also notes that if the judge refuses to index, and as a result the contract is terminated, the local government will have to re-select the contractor. No road workers on snowy and slippery roads (or less) It will clearly affect the safety level of road users.
There is also another factor that, according to the OIGD, should encourage municipalities to talk and negotiate with contractors about their claims. If, after termination of the contract, they choose, in a repeat bid, a higher bid than that proposed by the original contractor, they shall, in accordance with the guidelines of the Office of the Attorney General, Violation of the public finance system.
Jacek Losek, journalist from money.pl
Rate our article quality:
Your feedback helps us create better content.
“Internet Geek. Food Enthusiast. Thinker. Beer Practitioner. Bacon Specialist. Music Addict. Traveler.”