Alliance Procurement Process

The Helsinki and Espoo city governments have confirmed the total Raide-Jokeri project design and construction cost to amount to approximately 275 million euros. Additionally, the project scope shall possibly include the option of delivery of depots (approx. 64 million euros) and other project-related street and traffic systems (approx. 36 million euros).

The client, i.e. the cities of Helsinki and Espoo, will decide on using these options during the project.

The Raide-Jokeri project’s client first tenders out the designers as one group and then the contractors responsible for project delivery and other system suppliers as the second group.

Negotiation method is used as procurement method according to which the client chooses 3-4 candidates that fulfill the minimum requirements.

When the negotiations end, the client will ask the tenderers to present their final offers and then chooses the economically most advantageous tender.

Similar procurement process will be used for both designers and contractors. Tenderers’ ability to operate in the alliance and produce value for money as well as fee offer on design or construction will be used as the comparison basis of both tenders.

The management board of Raide-Jokeri manages the procurement, decides on procurement principles and accepts the choice of tenders and awarding of the contract before presenting them to the cities for decision. The main administrative decisions are contract awarding to designers and contractors as well as investment decision made after end of the development phase.

Procurement of designers

Contract notice of designers was published on March via the public procurement notification channel (HILMA).

The client received tenders from 3 tenderers and organised presentation events of the procurement process and tender documents with all tenderers. Contract negotiations as well as development workshops were held on May and June. The final offers were asked by 07.06.2017. Tender should reach a conclusion during June 2017.

The client’s scope estimation for design is about 27-34 million euros of which the Raide-Jokeri project design cost amounts to approx. 20-25 million euros, depot 4.5-6.0 million euros and other project-related assignments about 2.5-3.0 million euros.

The design of Raide-Jokeri project includes design management, designing and possible subcontracting in cooperation with the client and contractors chosen later.

Procurement of contractors

Contract notice of contractors was published in mid-April. 3-4 best tenderers are chosen during June so that the client can organise tender negotiations during August-September. Tender should reach a conclusion during October 2017.

The Raide-Jokeri project includes delivery management, construction with subcontracting and procurement of tramway system deliveries and installation in cooperation with the client and designers. Construction is planned with virtual means.

Procurement calendar

At the beginning of the development phase, this page will display Raide-Jokeri project’s procurement calendar with information about procurements needed by the project.