A crowd bidding for road projects to cut winners’ margins
ET INTELLIGENCE GROUP: The intensity of competition among companies bidding for construction projects has increased significantly in the past six months following relaxation in qualifications by the government. According to various analyst estimates, the average number of bidders has increased to 40 from 12-18 earlier.
Analysts foresee a situation similar to that between 2009 and 2011 when a large number of companies with unrelated business participated in bidding for road projects. This led to intense competition squeezing operating margins of the successful bidders.
