Falun conducted a nursing home project in 2013/ 2014. The target group was like the one for InnoBuild: sheltered housing accommodation. Experiences regarding the tender for construction and technological solutions from this project, called pre-InnoBuild, was included in the InnoBuild.
The pre-InnoBuild project tendered a contract for engineering, procurement and construction. Just one bid was submitted; the other suppliers of wooden houses chose not to respond to the relative small delivery.
When the Falu contracting authority understood the dynamics of the prefabricated wooden houses construction market, they decided to tender the body as one of many components in this project (InnoBuild).
A request of the body, including manager for the assembly on site, was one of the first procurements. The contracting authority contacted many potential tenderers to notify them about the contract notice. Falun received two bids.
Another 25 requests were tendered for InnoBuild in Falun. There have been separate procurements for e.g. architect, contractor, various technical consultants, and various suppliers. A key purpose of this divided tendering for construction was to enable the enterprises of top competence and innovative solutions to interact directly with the contracting authority rather than being a subcontractor.
The organization of the project management has gained valuable knowledge, which is not gained in traditional functional constructions. Furthermore, through management and control, the contracting authority will ensure the financial parameters given to the project by political decisions and budget compliance.
There are risks in a model like Falun’s. The large number of procurements is demaning for the contracting authority. Some of the tender competitions are crucial for the progress of work. If suppliers not awarded a contract, file complaints in these tenders, the project risks major delays. In InnoBuild, all but one area passed without complaints. The one complaint filed, was about the choice of supplier for furnishing. The construction could thus continue while awaiting the verdict from the Administrative Court (Förvaltningsrätten).
The benefits in a model like Falun’s are important. Instead of receiving 2 to 3 tenders in a “traditional” competitition for engineering, procurement and construction, the Falu model has resulted in approx. 80 tenders in total. The procurement model allowed SME businesses and niche product companies to participate in the tender competitions they otherwise could not attend, except as subcontractors. In this project, the chose of model allowed them to participate as independent suppliers.