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Action Winter 2022/2023. Local governments will spend a lot on removing snow and salting roads

Action Winter 2022/2023.  Local governments will spend a lot on removing snow and salting roads

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.

“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.

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.

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

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