Contracting with the Norwegian Public Roads Administration. Bjørn Erik Selnes, Director, Norwegian Public Roads Administration
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1 Contracting with the Norwegian Public Roads Administration Bjørn Erik Selnes, Director, Norwegian Public Roads Administration
2 Construction Start Appr. Cost Start E16 Herbergåsen Nybakk 2 Akershus xx E16 Eggemoen Jevnaker Olum 2 Oppland og Buskerud xx E39 Eiganes tunnel 3 Rogaland E18 Lysaker Ramstadsletta 3 Akershus xx E18 Rugtvedt Dørdal 3 Telemark xx E18 Tvedestrand Arendal 3 Aust-Agder xx E18 Varodd bridge 3 Vest-Agder xx E39 Søgne Lyngdal (Livold-Fordal) 3 Vest-Agder xx E39 Ålgård Sandved (Hove - Sandved) 3 Rogaland xx Rv 23 Oslofjord Connection, phase 2 3 Akershus og Buskerud xx Rv 23 Dagslett Linnes 3 Buskerud xx E39 Svegatjørn Rådal 4 Hordaland xx E39 Rogfast 4 Rogaland xx E39 Bjørset Skei 4 Sogn og Fjordane xx Rv 555 Sotra Connection 4 Hordaland xx E39 Betna - Vinjeøra Stormyra 4 Møre og Romsd/Sør-Trlag xx Rv 13 Ryfast 4 Rogaland E134 Gvammen Århus 5 Telemark E134 Damåsen Saggrenda 5 Buskerud xx Rv 36 Skyggestein Skjelbredstrand 5 Telemark xx E16 Bagn Bjørgo 5 Oppland xx E16 Sandvika Wøyen 5 Akershus xx E6 Vindalsliene Korporals bridge 6 Sør-Trøndelag xx E6 Jaktøya - Klett - Centre road 6 Sør-Trøndelag xx Rv 4 Roa Gran border 6 Oppland xx Rv 3/rv25 Ommangsvollen Grundset/Basthjørnet 6 Hedmark /16 E6 Helgeland 7 Nordland ca. 5,1 mrd. 15xx Rv 80 Hunstadmoen Thalle junction 7 Nordland xx E6 Tana bridge 8 Finnmark xx Projects in Action Plan National Roads start > 500 mill NOK (~60 mill )
3 Contracting procedure Governed by EU-procurement directive 2004/18/EEC, adapted as Norwegian procurement regulations Open competition as announced in the TED base Regional office is the Contracting Agency Commonly 2 5 tenderers on large contracts
4 10 d Tender phase Min 52 days NPRA model of tendering Procurement announcement (TED/DOFFIN) Tendering conference Tendering deadline, and public opening of tenders 1. Assessment of tenderer qualifications 2. Assessment of tenders 3. Award Award intent sent to tenderers. Complaints? Contract signed after complaints period Insurance documents and bond accepted Interaction period, mutual expectations, routines Start construction
5 Contracting procedure No prequalification Tender evaluation phase Tender award based on: Lowest tender price (most common) Economically most advantageous tender: criteria such as price, completion time, quality, future maintenance costs, public traffic disturbance, or others. Under development!
6 General conditions of contract NS 8405:2008 Norwegian building and civil engineering contract (for BB, bid an build construction) Adopted by the NPRA: NS 8406:2009 Simplified Norwegian building and civil engineering contract (for BB, bid an build construction) Adopted by the NPRA: NS 8407:2011 General conditions of contract (for DB, design and build contracts) All 3 standards are issued in English versions (NS 8405E, NS 8406E and 8407E) and can be purchased on the internet from Standard Norge at
7 NPRA contracting practice BB (Bid Build) dominates Detailed design is carried out by NPRA, using own staff or consultants. DB (Design Build) Part of the detailed design is carried out by the Contractor.
8 NPRA contracting practice DBO (Design Build Operate) Part of the detailed design is carried out by the Contractor. Project in Northern region, 15 years contract period.
9 NPRA contracting practice DBFO PPP: Design-Build-Finance-Operate, Private Public Partnership Detailed design, financing, construction and 25 years of maintenance and operations. Payment by the NPRA in monthly instalments throughout the contract period. Until now implemented in 3 projects 3 new projects prepared
10 Partnering procedure in all contracts Formalised kick off meeting and interaction process: Mutual understanding Aims for cooperation Agreed communication procedures Contract parties shall reserve sufficient time to conduct this procedure, to be carried out before the construction work can commence. NOT negotiation, the contract is already signed, and the terms are set!
11 Language -the practice of the NPRA The official contract language is Norwegian Tender documents and tenders in Norwegian Formal communication on site in Norwegian Site meetings to be conducted in Norwegian Some major projects: vital documents are translated into English One person in a work team must understand Norwegian Traffic guards ( flag-men ) must be able to communicate in Norwegian
12 Occupational health and safety Too many fatal or serious accidents, typically involving workers of the subcontractors. Requirements based on EU-directive 92/57/EEC, however adapted to fit Norwegian regulations Health and safety declaration to be enclosed with tender Health and safety has high priority NPRA specifies what risks are involved Contractor makes assessment and specifies routines for safe work
13 HSE, working conditions and wages Maximum two levels of subcontractors below the main contractor is allowed. The Contractor s own work force shall carry out at least 25% of the total sum of man-hours for the contract works Person(s) with the overall daily administrative responsibility shall be part of the Contractor s own staff. Sanction clauses in the contract concerning breach of the requirements regarding HSE, working conditions and wages.
14 HSE, working conditions and wages Minimum wages are set by tariff agreements or according to the common wage level for the actual profession when no tariff agreement exists. Identity card to be carried visibly by all personnell at the worksite Adequate housing conditions are required. Work hour limits set by law. Work during night (21:00-06:00) is forbidden, unless special permission is granted. Max 40 hours/week as an average.
15 Contract strategies Relationship to the market: A diverse and competitive market is encouraged Making it possible for large, small and medium sized contractors to compete for contracts Need for both international and national competetion!
16 Contractors > 100 mill NOK
17 The Consultant Market Norwegian Public Roads Administration Norconsult Multiconsult Rambøll Aas-Jakobsen Cowi Asplan Viak Sweco Vianova Reinertsen 56 40
18 Preparing New Strategy Norwegian Public Roads Administration Increased efficiency (15 %) Delivery of major projects: planning and construction Cities packages urban development Backlog on existing road network, operations & maintenance Rehabilitation and renewal of tunnels and bridges Methods, technology, 3D Standardization, bundling Project and contract strategy Strategy allocated to the actual project Use experience from several countries in further development
19 Experiences Norwegian Public Roads Administration PPP (Public Private Partnership) Preparing combined construction, rehabilitation, maintenance, operations («Helgeland-model», PPP without financing) - Competitive dialogue as procurement procedure Partnering in all type of contracts (TOC) Preparing early contractor involvment ETI/ECI contracts (E39 study) Project Alliance (Finland) or Alliance Program
20 Further information NPRA s website. It has information about road projects. An English version exists, but not comprehensive. Project information in Norwegian Norwegian National Rail Administration s website. English version available, information about projects Avinor s website. English version available. Provides contact details. Norwegian Coastal Administration s website. English version avilable. Provides contact details. More information about HSE, working conditions and wages at (English, Polish and Lithuanian versions available)
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