The East Link Project will be divided into approximately 15 different construction contracts, according to a proposal that is presented in time for our forthcoming construction phase.
Mr. Johan Sundin, who is Head of Supplier Market and Procurement, and Mr. Otto Andersson, Head of Construction, have developed a proposal where they outline the direction on how to split this large project into different construction contracts.
Mr. Johan Sundin:
- The size of the project means that there will probably not be enough resources within Sweden, therefore the project hopes to attract both Swedish and foreign suppliers and contractors.
Another reason for opening up for new operators is for Sweden to benefit from other countries' experiences in constructing high speed railways.
- We started out early to inform and interact on several markets. We have developed a construction strategy and based on the strategy, we now take the next step, which is to present this proposal on how to split the construction contracts in different parts regarding geography, size and technology content, Mr. Sundin says.
A huge project divided in parts
A basic principle is to comprise all construction work within the same geographical area into the same contract. However, electrical engineering, signals engineering and telecommunication engineering will be procured separately. The reason is that larger contractors often specialize in in one type of engineering.
By splitting the East Link Project into approximately 15 different construction contracts in the range of SEK 4-5 billion the idea is to also facilitate for foreign companies to operate in Sweden.
- Too many small construction contracts would create unnecessary administration in a project this size. With a few large contracts, the number of interfaces is reduced, which we believe will have a positive impact on the work to create a safer work environment, Mr. Sundin says.
Inviting the industry
In February, the East Link Project will invite market players for individual meetings to receive comments on the construction contract division proposal.
The invitation and the division proposal for the construction phase will also be communicated internationally. In addition, we will market the proposal in several countries by meetings with the market players.
We will begin the procurement work in 2017 and believe that interested contractors will appreciate our foresight. Since the majority of the contracts are very large our ambition is to make sure contractors will have rather ample time for tender counts in order to facilitate their planning and give them enough time to explore the possibilities of possible joint ventures, Mr. Sundin says