# Hungary cancels overpriced public contracts > Live situation record from CLSTR: https://clstr.news/situations/hungary-cancels-overpriced-public-contracts > Updated: 2026-08-03T15:14:39.000Z. Sources: 21. Developments: 2. In late July 2026 Transport Minister Dávid Vitézy announced the cancellation of the M86‑M87 highway concession after private‑sector bids were 36‑53 % above the projected cost, a move presented as protecting the state from inflated contracts. A week later, on 3 August 2026 Prime Minister Magyar Péter confirmed that the new TISZA government would withdraw from the Zugló office‑complex project, originally launched by the previous administration. The state had already paid more than 300 billion forints for a development that was expected to cost around 244 billion, with the final price exceeding 254 billion plus VAT. A review by the Magyar Nemzeti Vagyonkezelő and guarantees from the Hungarian Development Bank found that developer Bayer Construct Zrt. missed contractual deadlines and breached several closing conditions. The government plans to reclaim the funds, claim double the deposit, impose a 10 % penalty on the net price and seek additional damages. Recovered money will be redirected to energy, transport and health projects. Negotiations with the developer continue, with a possible lawsuit if an agreement is not reached by late summer. ## Timeline ### 2026-08-03: Hungary cancels Zugló office complex deal, seeks 300bn HUF refund Hungary’s new government halts the Zugló office complex purchase, reclaiming over 300 bn HUF and citing contract breaches, while redirecting funds to energy, transport and health projects. 10 sources. https://clstr.news/cluster/hungarian-government-cancels-300-billion-forint-zugl-office-deal ### 2026-07-27: Hungarian Minister Dávid Vitézy cancels M86‑M87 highway concession over overpricing Hungarian Minister Dávid Vitézy cancelled the M86‑M87 highway concession after bids 36%‑53% above the 1.488 trillion‑forint cost ceiling, halting the Kőszeg‑Szombathely‑Körmend project. 14 sources. https://clstr.news/cluster/hungarian-transport-minister-vitzy-cancels-major-highway-concessions --- Cite as: Hungary cancels overpriced public contracts. CLSTR, https://clstr.news/situations/hungary-cancels-overpriced-public-contracts