Renewal of the Koemarkt in Purmerland, The Netherlands
In preparation for the 600 th anniversary of the municipality of purmerend in 2010, it was decided to redevelop the historic Koemarkt (market square). Rather than use a traditional, single-stage, lowest-price, lump-sum tendering approach, a decision was taken to procure based on the Most Economically Advantageous Tender.
A ‘cost led procurement’ approach was used whereby a maximum budget of €2.4 million was set, with contract award to be based solely on quality. Furthermore, as it was necessary to be ready in time for the anniversary celebrations, any tenderer was required to commit to a fixed date of delivery. The client used a two-stage design and build contract and employed a consultant to support them on use of this type of contract as the public authority had little experience of this previously.
The tender procedure used for this project involved a prequalification process following which the top five bidders remained; these five integrated bid teams were invited to develop a preliminary design from which the list was reduced to three tenderers; these three bid teams produced a detailed design; from these designs a winning bidder was chosen. An interesting element of this procurement process was that the local population of purmerend was invited to choose the winner in a referendum. Two local SMEs businesses launched a consortium to bid for the contract and were ultimately successful with their knowledge of the local community.
As a result of using this procurement methodology, the project targets were achieved. In addition, the early feelings of scepticism that existed among some members of the internal departments of the public authority were transformed into enthusiasm and pride over the course of the project. Furthermore, communication with stakeholders increased project support, and advice from local residents resulted in advantageous design changes. This level of local support and involvement had not been anticipated
but was welcomed by both client and supply side project partners, demonstrating as it did significant local buy-in.
All project targets were achieved. The project was €3,000 under budget. This included a bonus of €15,000 built into the contract for early delivery which was successfully achieved by the contractor.
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