The situation is getting worse in the construction industry

The situation is getting worse in the construction industry

Rising prices of raw materials and construction materials make many investments in the construction sector no longer profitable.

Construction companies are facing huge challenges. This is a result of an outflow of workers from Ukraine and large increases in the costs of construction materials. The biggest problem is for large construction companies which execute long-term infrastructure contracts in the public segment. Smaller companies, which execute shorter local government contracts, are also in trouble. In their case, no rules of salary adjustments apply.

High uncertainty about material price levels makes companies increasingly resign from signing new contracts. The construction industry may soon face a slowdown or even a wave of bankruptcies. In the private segment, already now many projects simply have not been launched.

According to experts, in order to prevent a wave of bankruptcies in the construction sector, it is necessary to work out systemic solutions. Moreover, today we are dealing with an extraordinary change in economic relations, which entitles many contractors to file claims under the so-called rebus sic stantibus clause. In such cases, contractors have a chance to recover at least part of their losses.



Portal created by:

Our Social Media


Simplified restructuring

Join the newsletter to download the e-book in Polish


Subscribe to the newsletter and receive additional information