Questioning investor liability

The current spate of bankruptcies in the Polish construction sector is increasingly bringing into question the liability of investors towards bankrupt sub-contractors. Over 80 construction companies have been declared bankrupt over the last year and more are expected to become insolvent over the coming months. The biggest bankruptcies have been among companies involved in infrastructure projects, especially road-building contracts. Many of their problems have resulted from highly unfavourable contracts signed with the General Directorate of National Roads and Motorways (GDDKiA). The recent significant rise in the prices of building materials have revealed that the bulk of such contracts did not include the indexation clauses that would have allowed the remuneration to be respectively adjusted. As a result, the bulk of projects commissioned by the GDDKiA have been loss-making and have led construction companies into financial difficulties or even insolvency.The current spate of bankrup