Repairs to a railroad bridge near Zahradec on the Lovosice-Chesker-Lipa line in North Bohemia were awarded to the company that offered the highest quality rather than the lowest price. Thus, price was only one of the few items that played a role in the decision.
As much as SEK 40 million was invested in the reconstruction. In the end, the company that would do the work for 37 million kroner won.
Despite the fact that the competition law allows the authorities to select the winner on criteria other than price, this has not been done in practice to date. As a general rule, selection in railroad and road construction contracts is always based on price. In fact, price plays a 90 percent role in selecting the right firm. The remaining 10 percent is always related to the length of the warranty period. However, this period is the same for most companies, i.e., 10 years. Therefore, decisions were always based solely on the quoted price.
– New Methods of Decision Making
This new method, which does not deal only with price quotations, naturally brings more work for the bidders. However, the Department of Transportation sees it as a way to ensure higher quality construction and thus save on maintenance and repair of these new buildings.
The author of the manual is Roman Novotny, who argues that the procedure offers significant advantages to the construction companies themselves.
The bidding for the repair of a bridge over a nearby canyon with the natural monument Peklo is evidence of this. Companies that participated in the bidding process were able to score points by presenting, among other things, the five best construction projects. Additional points were awarded not only for the analysis of construction risks in the proposed repair solutions, but also for the fact that the company had already prepared for possible risks and proposed ways to avoid or deal with them
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Another factor that influenced the selection of the appropriate contractor was the interview with the construction manager.
This selection method was called Best Value, and a total of seven firms applied for the scheme.
–Proposals that were successful
Of the seven that were submitted, the proposal that was ultimately successful was the highest ranked in all categories. Only the risk assessment was not the highest. It is true that in the final results the company actually offered the lowest price, which was even lower than the expected investment in this renovation.
The investor in this project was the Railway Infrastructure Management Agency. Spokesman Marek Illiaš has already indicated that he considers this pilot project and the first best value selection to be a great success.