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Summary of market dialogue meetings concerning Svanemøllen Cloudburst tunnel

The meetings took place on July 20th – 23rd, 2022.

In connection with the forthcoming tender for the Svanemøllen Cloudburst tunnel, 4 market dialogue meetings have been held.

The presentation and invitation to participate was published on TED, where all interested parties could submit a request for participation. Based on the submitted requests and responses to a published questionnaire, the following were invited for dialogue:

  • Aarsleff og Østergaard
  • Hochtief
  • CG Jensen/Implenia
  • Acciona

The meetings were held based on the following Agenda:

  1. Welcome and presentation of participants
  2. Purpose with the market dialogue
  3. Presentation of SST
  4. Topics for dialouge:
  • Procurement / Contract – SB (Special Conditions)
    • Questions 2.1 and 2.2, Payment and price index
    • Question 2.6, Cost drivers
    • Question 2.7, Key risks
  •  Sustainability
    • Question 2.4, Sustainable criteria
    • Question 8.1-8.8 Sustainability
  • Technical
    • Question 2.3, Scope of lots
    • Question 2.9, GBR
    • Question 2.10, Referring to key risk.
  • Other topics
    • HOFOR might address questions about, H&S, Working Clause and Interns

The summary contains the most important information that HOFOR has informed about on the meetings.

Purpose with the market dialogue

It was informed that the market dialogue meetings were not a part of the tender but an attempt to have input to the tender from the market.

Presentation of SST

HOFOR made a short briefing on the project referring to the Power Point “Presentation SST market dialogue.pptx”.

The cloudburst tunnel has a total length of appr. 10 km with dimensions between Ø1600 and Ø4900, set for hydraulic reasons. The construction contracts are expected to be split in three parts, East, North and South. It has been an attempt to keep the same work on the same contract within different locations.

The return pipe(Ø1000) is marine work and therefore not in this tender lots. But it does include interfaces with this project.

HOFOR will consider the possibility of making a  in 2 lots instead of 3, combining east and south

However, there is no fixed plan for the different phases of construction yet and the split was subject to the dialogue.

Tunneling and shaft works is expected to be included in the tenders in the 3 lots while other works, like preparations and re-establishments of the surfaces are to be offered as separate tenders. Consequently, the contract and construction work will have several interfaces to other contracts.

Most of the contracts will be built and only parts are design and built. All temporary works and permanent tunnel lining (pipejacking and segment) are planned to be designed by contractor.

Robustness in construction is an important parameter to HOFOR, which is why a tenderer must consider how they can ensure a stable propulsion that minimizes risks of unintentional stops.

Topics for dialogue

Payment conditions

Ad FB § 36, stk. 1:

“Payment is made in accordance with FB § 36, para. 1 for 90% of the contract price.

The remaining 10% of the contract price is withheld until delivery and the Client’s receipt and approval of documentation.”

The client became aware that the above payment condition could be understood as if 10% of each payment would be withheld from the beginning of the project.

It was explained that payment would be made for 100% of the approved invoices until 90% of the contract price has been paid. At that time the remaining 10% is withheld until delivery and the Client’s receipt and approval of documentation.

Prepayment on specific items was discussed. HOFOR understands that cashflow is important to the contractor.

Prices – index

AB18 Protects the constructor to a certain extent if there are extraordinary costs (AB18 §35) but the documentation of the costs is on the contractor. It is important that the contractor is aware of this at an early stage, from the time of tender, to secure the necessary documentation in case of situations related to §35.

The Client is aware of the current price situation on several product, such as steel and electricity etc. and will follow the market closely until publishing the tender to make adjustments, if possible. 

Sustainability

There is a strong focus on sustainability both now in the Tender procedure and in execution in the contract. The SST project has 8 different focus areas as shown in the Power Point.

The main area where CO2 is seen possible are:

  • Cement and steel (80%) phase)
  • Energy consumption during construction (10%)
  • Remaining to consider in the (10%)

HOFOR is working on how to incorporate reductions in the design.

Interns and apprentices

The supplier must have great focus on how to secure interns/ apprentices during construction.

HOFOR is obliged to request that the supplier employs a certain number of interns/apprentices during the construction period, if possible. HOFOR has noted that this is primarily possible in the areas of structures on the concrete work and a little on the excavation work.

Recently a new legislation concerning demands to apprentices in project has been published which will be incorporated in the contract accordingly.

Occupational safety and health

HOFOR has a strong focus on the occupational safety and health and expects the same from a given supplier.

The starting point is that suppliers must comply with legislation for the occupational safety and health. In addition, HOFOR has a strong focus how to reward better compliance than legal requirements during construction.

Apart from contractual demands, HOFOR expect that occupational safety and health will become part of the evaluation criteria in the Tender.

Date: 25.06.2022
ID: 24.02-06674

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