Worrying trends are observable on the property market. Labour shortages and the increase of material prices led to a considerable increase of investment performance costs – which poses a threat especially to those entrepreneurs who concluded contracts 2-3 years ago.

In Poland, less and less persons are willing to buy apartments or land allocated for the construction of warehouses, offices, commercial centres and shopping malls. As far as the last type of premises is concerned, investors opt to modernize existing objects since, in the context of the ongoing restriction of Sunday trading, profitability of running large area shopping malls may be put into question. However, the problems on the property market also affect contractors of infrastructural investments, especially ones contracted by the state.

And what about public procurements?

Upon winning the tender, contractors may find themselves in market conditions differing from the previous situation. It may turn out that it is more viable to abandon the project and pay a stipulated contractual penalty than to complete an unprofitable undertaking. One of the options is to apply civil law methods relating to extraordinary changes of circumstances. However, contractors choosing that option must be prepared for long and complicated court proceedings whose outcome is far from certain. Another solution is to negotiate adjustment of contractual payments – however, this depends predominantly on the will of the contracting authority, that is a public entity. Nonetheless, it must be remembered that public procurement procedures are held not only by state but also self-government entities. These, however, are often faced with financial difficulties and debt.