Residential house ul. MPČĽ Brezno – Mazorníkovo (Public procurement)

City Brezno | budget (PHZ): 6 354 519,25 EUR without VAT

What was the project about ?

The project was about selecting a contractor with sufficient capacity to implement the project - construction of 96 rental flats together with technical infrastructure, using the procedure of an over-limit contract. Due to the relatively high investment intensity of the project, a successful electronic auction will be held to achieve the most efficient cost-effectiveness.

Idea/solution of the project

The solution concept is based on the requirements to create optimal housing conditions for different groups of the population, both young families and seniors. The land intended for construction is situated on the outskirts of the housing estate in a pleasant, quiet location. There is one 8-story apartment house on the eastern side; from the northern side, there is an access road, and from the other sides, there are fields and meadows.


Concerning the scope of the project, the financing of the project consisted of several sources:

1. Subsidies from the Ministry of Transport and Construction of the Slovak Republic according to Act No. 443/2010 Coll. on Subsidies for Housing Development and Social Housing, as amended, in accordance with the implementing regulations.

2. From a loan provided by the State Housing Development Fund according to Act No. 150/2013 Coll. on the State Housing Development Fund as amended and Decree No. 284/2013 Coll. on the details of the amount of support from the State Housing Development Fund, the general conditions for the provision of support and the content of the application, as amended.

3. The contracting authority's own resources to cover the difference between the purchase price and the sum of the subsidy from the Ministry of Regional Development and the loan from the State Housing Fund.

Procurement preparation

The preparation of the public procurement, for the most part, consists of the selection of the procedure itself, the thorough drafting of the description of the subject matter following Article § 42(1) of the Public Procurement Act, and the setting of optimal conditions of participation to ensure both broad competitions following the law and the required qualitative level of the bidders. Given the above, in cooperation with the contracting authority, we have chosen a tendering procedure using an electronic auction, as high participation of bidders was expected. Taking into account the specificities of the contract - large volume construction works, we have chosen specific conditions of participation, such as proof of the financial and economic capacity of the bidders - i.e., the obligation to submit a turnover statement and a bank declaration, as well as the conditions of participation of technical and professional competence by providing a list of references (technical infrastructure and construction works of similar volumes) and the possession of professional capacities - a construction manager with many years of experience. Concerning the cooperation with the partner law firm Hronček & Partners, s.r.o., the importance of setting the commercial terms and conditions and the draft of the resulting contract for the work should not be overlooked, in which various securing institutes were assessed about the volume of construction works, the condition precedent for the effectiveness of the contract with regard to the necessity of co-financing from the ŠFRB and the Ministry of Transport of the Slovak Republic, as well as liability relations and other essential elements of the contractual relationship.

Procurement process

In the procurement process, we administratively handled communication with individual bidders through requests for clarification and substantive consultations concerning the provisions of the contract terms and conditions. As expected, nine tenderers took part in the procurement procedure, whereas, due to the use of the electronic auction, it was necessary to assess the fulfillment of the conditions of participation of all tenderers before entering the auction room, which is directly linked to a large number of requests for clarification of the tender according to an Article § 40(4) or Article § 53(1). Following the preparation of the minutes of the evaluation of the conditions of participation, the assessment of the tenders, and the administrative arrangements for the appointment of the committee, an electronic auction was held during which the final price fell by more than 18% compared to the estimated value of the contract. Subsequently, notices of non-acceptance of tenders, information on the result of the evaluation of tenders, and all the necessary acts leading to the signature of the contract with the successful tenderer were drawn up.

Results of the project

The contract concluded with the successful tenderer
Supported rental housing in the city of Brezno
EUR 1 376 423,10 of savings

Our comment

For a contract of this magnitude, it was essential to set up the contract in a high-quality manner, particularly the conditions of participation and the draft works contract, so that they were in exact accordance with and reflected the requirements for the implementation of the contract. The overall set-up of the tender met the criteria for a contractor with sufficient capacity and the principle of non-discrimination.

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