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Impresa Pizzarotti will not complete the construction of three sections of S5

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The General Directorate for National Roads and Motorways (GDDKiA) decided to withdraw from contracts with Impresa Pizzarotti for reasons attributable to the contractors. The dissolved contracts concern the construction of three sections of the S5 expressway in the Kujawsko-Pomorskie Voivodeship.

Three sections of the S5 road

The decision to terminate the contracts concerns sections of the S5 road: Nowe Marzy-Dworzysko (23.3 km), Dworzysko-Aleksandrow (22.4 km) and Biale Blota-Szubin (9.7 km). The contract was terminated due to the fact that the Italian company did not resume work on the construction site after the winter break.

Contractual penalties resulting from non-payment or late payment of remuneration due to subcontractors amount in total to over PLN 14m. The Investor is also entitled to charge contractual penalties for withdrawal from the contract due to the fault of the contractor. The total amount of these penalties relating to the three sections is over PLN 156m.

According to the announcement of GDDKiA, the announcement of tenders for the selection of new contractors is planned for the turn of July and August.

Low level of construction progress

GDDKiA informed that the state of advancement of works on the sections carried out by Impresa Pizzarotti is very low. The section Nowe Marzy-Aleksandrowo, which should be ready in December 2019, is at 23.16% material and 39.10% financial advancement. The material advancement of the Dworzysko-Aleksandrowo section is 29.87%, and the financial advancement is 39.58%. This part was to be completed in November 2019. In the last section of Biale Blota-Szubin, which was to be completed in July this year, the material advancement is 39%, and the financial advancement is 50.38%.

Termination of contracts is a problem for road construction

The withdrawal of GDDKiA from the agreements with Impresa Pizzarotti, is another such case in recent times. Last week another Italian company, Toto Construzioni Generali, informed about the abandonment of the construction of the S5 expressway between Poznan and Wronczyn.

In April, GDDKiA terminated contracts for the construction of the S3 expressway near Polkowice and the Czestochowa ring road along the A1 motorway. The Italian contractor Salini was also responsible for these sections.

In May GDDKiA withdrew from contracts signed with Rubau Polska. They concerned the construction of sections of express roads, S7 on the section Warsaw Airport-Lesznowola and S61 on the section Podborze-Sniadowo.

The lack of valorisation of contracts concluded in 2015-2016 results in the fact that for prices from 3-4 years ago, the contractors cannot complete the investment. Failure to execute the contracts by their original contractors will result in a delay in completion of the construction works.

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