Abstract
The article presents a legal analysis of the provisions of the Public Procurement Law together with the regulations stipulated therein in correspondence with the case study concerning the course of the auction for the Construction of a Waste Thermal Treatment Plant in Kraków positively validating the research hypothesis. The cases of the companies discussed show that an incorrect economic credibility analysis of an entity may lead to unnecessary complication in the course of an auction. Withdrawal of three out of four tendered from the auction within 6 months and the selection of the contractor in the sixth round is an example of unnecessary auction complications. If economic credibility of companies had been checked before the stage of filing tenders, those companies would most likely be prevented from bidding. Both the threat of a bankruptcy as well as the financial potential of a company are possible to be established several months before the award stage. Because it had not been done, and the companies knew they could later withdraw from the auction without losing their bid bond, that is without any consequences, they filed their bids which were characterized by a substantial risk of failure. Economically incredible companies file bids that are burdened with substantial risk. The authors believe that in construction tenders involving huge amounts of money, as in the case discussed here close to PLN 800 million, special care should be given to checking the economic condition of companies. The proposal of expert analyses to be performed by credible entities having considerable expertise and experience should be considered. The obligation for a company to present an analysis of economic credibility to be presented in a concrete case of procurement at the first stage of an auction may result in the reduced number of later problems both at the award and then the implementation stage. The authors suggest three relevant models best predicting bankruptcy of business entities and if at least two out of three such models indicate that the economic and financial condition of a given entity is unfavourable, the bidding commissions should on this basis reject such bids.