The Storstrøm Bridge. Challenging tender and contract signing. NETLIPSE, Oslo, November 12 th 2018
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1 The Storstrøm Bridge Challenging tender and contract signing NETLIPSE, Oslo, November 12 th 2018 Niels Gottlieb, Project Manager (Construction) Vibeke Schiøler Sørensen, Legal counsel
2
3 Sweden Location / Background / Overview The Storstrøm Bridge connects Zealand and Falster Zealand Part of railway line between Central Europe and Scandinavia Existing bridge was built in 1937: Longest bridge in Europe at the time Single track railway Repair of the old bridge not feasible Femern Belt Link Germany
4 Storstrøm Bridge Replacement Project
5 Storstrøm Bridge Facts Facts Length m 2 railway tracks Passenger Trains 200 km/t 2 lane road 80 km/t Combined Pedestrian / Cycle Path Dates Construction Act May 2015 Construction Start 2018 Opens 2022 (railway 2023) Demolition of Existing Bridge Budget 4.1 billion DKK
6 Tender design - Cross Section Single Box Girder Railway and road on same girder
7 Span configuration Concrete Box Girder 45 No. Viaduct Spans 80 m 2 No. Navigational Spans 160 m Navigational Clearance 26 m Single Box Girder Railway and road on same girder
8 Choice of procedure and contract Strategic decisions Procurement procedure: Technical dialogue PQ Competitive dialogue Choice of contract: Design-build contract
9 D&B Storstrøm Bridge Timeline for tender and contract October 2014 Technical Dialogue February 2015 Contract notice was published June 2015 July 2016 July 2017 Announcement of 5 prequalified (out of 7 requests) Publishing of Tender Material Submission of Tender December years Planned Signing of Contract actually signed February 26 th 2018 with Storstrøm Bridge Joint Venture (SBJV)
10 Results PQ and award of contract Prequalified Joint Ventures Nationality Vinci Construction, Hochtief & MT Højgaard Per Aarsleff & Ed. Züblin Rizzani, Besix & Acciona OHL & SK Engineering Itinera, Condotte & GLF Not prequalified Joint Ventures BAM Infra bv & Max Bögl International China Communications Construction Company
11 Challenges and risks in the tender process Political decisions change Challenges before contract signing Political agenda of the labour unions Changes in the SBJV during the contract
12 Political decisions change From a short schedule to a long schedule The Storstrøm Bridge is part of a larger project the tunnel across Fehmarnbelt between Denmark and Germany Animation Femern A/S
13 Challenges before contract signing Timeline Note: KA = State attorney TRU = Transportudvalget = Transportation Committee Fagbladet inquiry about corruption complaints, white lists, etc The Danish Road Directorate receives information that Condotte has requested financial reconstruction Issue of Prophylaxis Order (published ) The Rome court approves Condotte signing a contract Contract signing Planned contract signing (cancelled) replaced by urgent consultation at TRU Review of the SBJV (Joint Venture) economy presented to the TRU Technical review of the whole tender process by KA presented to the TRU Expiry of complaint deadline for prophylaxis
14 Challenges before contract signing Grounds for excluding SBJV Mandatory grounds for exclusion (directive 2004/18 art. 45, 1) Cases of corruption concerning Condotte (part of the SBJV together with Itinera and GLF) Voluntary grounds for exclusion (directive 2004/18 art. 45, 2)? Change in the SBJV Itiniera, Condotte and GLF were prequalified as a consortium Limited access to allow changes in the procurement rules
15 Challenges before contract signing Taking precautions Handling the risk of criminal convictions in the contract Self-cleaning clause added to the contract Extra financial security Parent company guarantee
16 Challenges before contract signing The Press storm:
17 Social clauses Social clauses and co-operation with the labour unions The contract: ILO-convention no. 94 Clauses about apprentices/interns/trainees Registration of foreign workers working in Denmark Danish regulations to health and safety Co-operation with the labour unions from an early stage Continuing process after the contract signing Facilitating the basis of a good co-operation between the SBJV and the unions
18 Changes in the SBJV during the contract Continuing focus on the reconstruction procedure Change in the SBJV Limited access to allow changes substantial modification
19 Time for debate
20 Lessons learned Stakeholder identification Repeating risk assessment Communication IPAT assessment?
21 Thank you Thank you for your attention
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