Price for Construction of Tirsova 2 to Increase After All? – State Negotiating with Potential Contractors About Estimated Value of Works

Within the competitive procedure with negotiation for the construction of the University Children’s Clinic Tirsova 2, the Ministry of Public Investment will negotiate about the offered price with the bidder which responded to the previous tender, and the tendering procedure can be finished with a price agreement, the ministry told eKapija. Regardless of the outcome, the ministry expects the procedure to be brought to a close within a month, and by the end of April this year at the latest.

The estimated value, that is, the price that will be negotiated about, is RSD 11.2 billion (around EUR 95 million) without the VAT.

The ministry reminds that the procedure of the opening of bids in the international open procedure of the public procurement for the works on the construction of the new facility of the University Children’s Clinic was held on September 14, 2023. Only one bid was sent, by a group of bidders consisting of 10 companies, group members, led by SMB Gradnja DOO, Subotica, and the bid was higher than the estimated value of the public procurement.

– Considering the increase in the prices of construction materials, equipment and labor in the market, which, as a global phenomenon, has marked the past three years, and also considering the passage of time between determining the estimated value of the procurement, that is, the works and the moment of the expiration of the deadline for the submission of bids, and following the consultation with the Bank at which the financing for the realization of this project has been secured, the decision was made to carry our an independent check of the prices in the market and thereby determine the band of the real market value of the job at the moment of submitting the bid – they say for our portal.

In the procedure of the expert bid assessment, they add, it was determined that the bid was valid regarding all the other requirements from the contest documentation, that is, that all the evidence proving the fulfilment of the criteria for the qualitative selection of the business entity had been submitted.

– With this in mind, if we look at the Law on Public Procurement, it was possible to accept even that offer without a prior checking of the prices, regardless of the fact that the offered price was higher than the estimated procurement value, and especially considering the already mentioned circumstances regarding the growth of the prices. However, we considered that responsible conduct required a prior market analysis and, thereby, a check of whether the offered price is justified – the ministry explains.

They add that, upon the completion of the assessment, and in line with the Law on Public Procurement Procedures and with consent from the Bank at which the financing for said project has been secured, the decision on stopping the public procurement procedure, and then also the decision to initiate the competitive procedure with negotiation with the bidder about the offered price, were adopted and published.

– This procedure can be finished with an adjustment of the offered price, in which case, the signing of the agreement with the changed price is to follow, of course, also with the previously obtained consent from the bank which has secured the financing for the realization of this project, all in line with the Law on Public Procurement Procedures (Article 55) – they point out.

The Ministry of Public Investment has opened a new tender for the construction of the University Children’s Clinic Tirsova 2, and this time, instead of an open procedure, contractors will be sought in a competitive procedure with negotiation.

Let us remind that it was precisely the price that was the reason for the cancellation of the previous tendering procedure, because the bid of the only interested group of bidders was higher by nearly RSD 4 billion without the VAT.

The only bid was submitted by the consortium of the companies SMB Gradnja, W.D. Concord West, Telegroup, MPP Jedinstvo ad Sevojno, A.R.J Technology, DBS, Elektrozapad, Ipon Sistem, Premer Savkovic and PP Inzenjering Stojanovic. This bid formally met the terms of the tender, that is, the documentation, but was deemed unacceptable due to the offered price.

In March last year, the minister for public investments of Serbia, Marko Blagojevic, and the governor of the Council of Europe Development Bank, Carlo Monticelli, signed an agreement between Serbia and the EU on the allocation of a grant for the construction of the children’s hospital Tirsova 2, for which EUR 35 million had been set aside.

When they are selected, the contractors will be given three years to complete the construction. The gross floor area of the new facility is 61,923.98 m2, and the facility is to have five basement levels and six floors (including the ground floor). The number of hospital beds is 167-230 and 71 beds within the daily hospital, and 528 parking spaces are also planned.

I. Zikic

Ministarstvo za javna ulaganja Republike Srbije

SMB-gradnja doo Subotica

W.D. Concord west d.o.o. Beograd

TeleGroup doo Beograd

MPP Jedinstvo Sevojno a.d. Sevojno

ARJ Technology d.o.o. Novi Sad

DBS d.o.o. Beograd

Elektrozapad doo Beograd

Ipon Sistem doo Zemun

Premer Savković doo Lazarevac

PP Inženjering Stojanović d.o.o. Beograd

Ministry of Public Investment

SMB Gradnja

WD Concord West

Telegroup

MPP Jedinstvo ad Sevojno

ARJ Technology

DBS

Elektrozapad

Ipon Sistem

Premer Savkovi

PP Inženjering Stojanović

Council of Europe Development Bank

Marko Blagojević

Carlo Monticelli

Zoran Radojičić

Aleksandar Vučić

construction of Tiršova 2

Children s Hospital Tiršova 2 Belgrade

University Children s Clinic Tiršova 2 Belgrade

tender for construction of Tiršova 2

Law on Public Procurement Procedures