Over budget bids have prompted a re-examination of the tender procedure for construction of the $960M Amsterdam North/South Metroline contracts, and a call for re-bids.
In December last year, Client consultant North South Line (NSL) received threefold tender bids from six JVs for 1) construction of the deep stations (contracts 5, 6, & 8), 2) the 3.8km long, 6.5m diameter bored tunnels (contract 4) and 3) a combination of both. The combination (mass) contract was chosen in the opinion that it could create ‘synergistic advantages’.
Due to the soft ground conditions and sensitive positioning of the work under Amsterdam the bids included a Risk Assessment Allocation Catalogue (RAAC) provided by the employer. The system was developed to provide a risk allocation between the employer and contractor to mitigate price rise due to unforeseen risks.
A spokesman for NSL told T&TI, "It was a disappointment for NSL that despite the RAAC strategy, the bids were much higher than the budget, the bids were to high to negotiate."
After additional talks between the Client, NSL and the contracting JVs it was decided that none of the JVs deserved consideration for the negotiation phase for the station lot and the mass contract. However one JV has made a competitive bid for the bored tunnels (contract 4) which has been accepted for negotiation. The spokesman was unable to name the JV.
The deep station contract will now go out to retender in July as a separate contract based on the Client’s design with no provision for alternative bids. The size of the JVs will be restricted to two partners to create more competition on the Dutch construction market. Two additional contracts, the Grand Central Station passage and the immersed tube tunnel under the River IJ will also shortly go out to tender. There will be no pre-qualification procedure.
