Profitability of the contract vs. the Engineer’s “decision-making comfort zone”. Where to look for margin in 2026 – a view from the other side of the table.

In discussions about the state of the Polish construction sector in 2026, the focus is dominated by indexation and rising costs. However, from the perspective of practitioners supporting investment processes on the largest infrastructure contracts, we observe another—often overlooked—area in which contractors’ capital is effectively “frozen”: decision-making paralysis and a lack of understanding, on the part of the Engineer and the Employer, of the mechanisms for reviewing and approving claims.

Why do justified claims end up in the bin?

Over the past several years, while advising Contract Engineers on more than a dozen major projects, we have reviewed hundreds of claims submitted by leading Contractors. The conclusions are unequivocal: in 2026, being substantively right is not enough to secure payment.

Time and again, we have witnessed situations in which technically impeccable, thoroughly documented claims were rejected or “frozen” in procedural limbo. Why? Contractors often frame their submissions in a confrontational manner, forgetting that on the other side there is not a soulless machine, but a team of people who fear disciplinary liability and public-sector scrutiny.

A claim as the Engineer’s “alibi”.

Effective contract management in today’s market realities requires a shift in paradigm. Instead of constructing a dispute narrative, you need to construct a narrative of safety. Be a partner in the construction process—grounding your arguments in facts—rather than an opponent making irrational demands.

Our experience of working “inside” Contract Engineer teams shows that the key to unlocking margin is to provide the Engineer with legal reasoning that makes a decision to release funds safe and defensible in light of potential audits. In 2026, the lawyer’s role is not to win a war against the Employer in court five years from now. It is to draft the documentation here and now in such a way that the Contract Engineer can, with a clear conscience, sign the Interim Payment Certificate.

Negotiation and mediation — tools for financial liquidity.

At Hoogells, as legal advisers specialising in infrastructure, we deliberately place emphasis on negotiation and mediation—conducted in a way that is safe for the Employer. We understand what Contract Engineers and Employers are concerned about.

In today’s economic environment, time is money—literally. Maintaining a company’s financial liquidity is the priority. Multi-year court disputes, even when won, rarely deliver a satisfactory return once inflation and the time value (cost) of money are taken into account.

We know the communication “codes” and internal procedures used by Contract Engineers. We know which arguments open the way to a settlement and which trigger an immediate decision-making freeze. This knowledge enables us to turn potential conflicts into constructive discussions about contract amendments and payments.

A new strategy for 2026.

The key to protecting and unlocking margins in 2026 is an excellent command of infrastructure law, supported by practical insight into how contractors’ submissions are interpreted “on the other side of the desk.”

The experienced Hoogells team helps identify and recover margin hidden in ongoing contracts by auditing contracts, pinpointing the most “margin-rich” items, developing a strategy to recover hidden margins, and conducting effective negotiations—grounded in an understanding of how claims are assessed by the Contract Engineer and the Employer/Investor. We remain at your disposal.