The Budimex Group's supply chain covers thousands of suppliers and contractors, with whom it cooperates every day. The vast majority of them are Polish enterprises. Approximately three thousand counterparties have been cooperating with the Group continuously for at least 8 years, and for some key suppliers this period is even more than 15 years. As a general contractor, Budimex is responsible for the actions undertaken by them, supplied materials and provided working conditions.

Each new contractor is subject to a preliminary assessment on the basis of a qualification questionnaire containing a declaration on compliance with applicable regulations in the scope of labour law or environmental protection, among others. All significant suppliers and subcontractors are subject to preliminary assessment (qualification). In the case of ending cooperation with a given supplier, the final assessment is conducted, including such issues as quality, timeliness, actual technical capacity, OHS, environmental aspects and issues related to human rights, including employees’ rights. The assessment is conducted by contract managers who must indicate any irregularities or events that may constitute a threat, or actions inconsistent with the principles applicable to sub-suppliers in the Budimex Group. Results of questionnaires and final assessments are gathered in the Central Database. Internal auditors have full insight in these materials and use them to assess sub-suppliers. They also have access to bids presented by suppliers, based on which the contract has been signed. Thanks to the analysis of bids, contract's history and the final assessment result, it is possible to verify how the cooperation actually proceeded and ended and whether it was consistent with what the given sub-supplier committed to at the bid submission stage. Regardless of the assessment, after the end of a given contract, the Budimex Group sends a Satisfaction Survey to the investor. The assessment results and conclusions are then analysed by the management at annual management reviews.

Based on the preliminary qualification and final assessments, subcontractors are divided as follows:

  • recommended (top ratings),
  • qualified (positive ratings, but slightly lower than in the case of recommended suppliers),
  • rejected (low ratings, but qualification is conditional, and therefore cooperation can be started if e.g. business partner introduces corrective actions),
  • disqualified (cooperation with a given partner is impossible, e.g. due to its financial situation or previous gross breach of rules on cooperation, e.g. in the area of ethics or environmental protection: bribery attempt or causing significant environmental damage etc.).

The Budimex Group strives to ensure that material agreements with key business partners, regardless of their negotiating power, are supplemented with an appendix constituting a set of rules of conduct for counterparties, which considers the aspects of ethics, human rights, compliance with law, care for natural environment, etc.

The results of preliminary assessments (qualification surveys) and final assessments for sub-suppliers in 2020 are as follows (as at 31/12/2020)::

2016 2017 2018 2019 2020 cumulatively (active)
framework agreements
material project agreements defined as framework agreements BZC 16 19 30 11 7 164
material project agreements containing ethical clauses. total number of agreements with these clauses and percentage of material framework agreements 11 (69%) 11 (58%) 24 (80%) 8 (73%) 6 (86%) 128 (78%)
percentage of all agreements with ethical clauses among all framework agreements 0.5 0.72 0.73 0.73 0.86 0.79
questionnaires and final assessments
Number of qualifying questionnaires 1.191 1.019 1.163 885 820 4.662
number of conducted final assessments 4.583 3.068 5.329 1.42 694 7.411
Number of irregularities identified 184 153 361 93 40 507
Number of irregularities identified
meeting deadlines 61 45 121 31 12 166
product quality 24 21 47 10 6 66
technical capacity 50 41 78 23 7 112
compliance with price terms 11 10 31 13 6 51
OHS 26 23 49 7 5 62
environmental protection 12 12 35 9 4 50

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