Challenges In Norway For Foreign Contractors

Foreign contractors have won several large road projects during the last years. From winning just one of the Norwegian Public Roads Administration's contracts in 2009, foreign contractors won more than half only three years later, in 2012. At the same time several foreign contractors have run into problems and big challenges – some have even gone bankrupt. In this article we shall try to shed some light on some of the causes why many foreign contractors have had a rough start in the Norwegian market.

Unrealistic low prices

The Norwegian competitive tendering is often made in the way that the tender with the lowest price wins. Foreign contractors who wish to gain access to the market will therefore price themselves low – and sometimes too low.