📋 Tender Overview
The railway administration will save almost a third of the costs of track repairs and maintenance. It is possible to reduce the bid prices of bidders in public contracts and a larger number of companies are also participating in them. Instead of the expected 5.76 billion crowns these works will cost a total of 4.1 billion. The money saved will also speed up the start of repairs to other tracks.
The changes we have made in recent months are resonating on the market and the interest of companies in our tenders is growing significantly. We see a direct correlation between the number of applicants and the resulting price. In some cases we have even received nine or ten offers and the prices then drop by tens of percent even to half of the estimated costs. At the same time we know that we have to watch for any additional work so that the costs they didnt rise even during implementation says Tomas Toth CEO of the Railway Administration.
The savings relate to eight dozen actions focused on the maintenance of tracks switches catenary lines or security equipment. The contracts also include crossing repairs or platform extensions.
Savings of 31 percent were recorded by the Railway Administration for actions aimed at routine track maintenance. On average four bidders applied for these tenders. The so-called cyclic renewal of the main lines will also cost significantly less in total there are four tenders for 343 million crowns. For example for the restoration of the section between Vsetin and Horni Lidci the savings are close to 200 million crowns. Seven bidders applied for this contract.
Thanks to savings exceeding the sum of 1.6 billion crowns the Railway Administration can start the major renovation of the line between Beroun and Karizek this year which was originally planned for next year. Earlier for example the repair of the section Bakov nad Jizerou - Mnichovo Hradiste - Prisovice will also come up.
The drop in prices and the increased interest in contracts are due to the changes in tender procedures that the Railway Administration has been gradually introducing in recent months. Specifically it reduces administrative barriers adjusts qualification requirements and makes more use of preliminary market consultations. At the same time construction work and technological units will be newly separated for larger orders. Suppliers are then not forced to join consortia and more of them apply for tenders. The greater number of offers is then reflected in more favorable final prices.
Changing the terms of public procurement is not the only way to save on track maintenance. For some constructions for example the Railway Administration provides the material itself buys rails or sleepers in larger volumes and therefore at a more favorable price.
