Infrastructure Plans Risk Failure Without a Shift in Perspective Among Decision Makers
In a bid to expedite the implementation of the federal government's multi-billion infrastructure measures, specialist lawyer Ralf Leinemann from Leinemann Partner in Berlin has proposed adapting the procurement procedures.
Leinemann advocates for awarding general contractors through functional tendering for large infrastructure projects. This approach, he believes, can lead to enhanced innovation, flexibility, and cost efficiency, among other benefits.
Functional tendering focuses on the desired outcomes or functions rather than prescribing detailed technical solutions. This allows contractors to propose innovative and optimized methods to achieve project goals, fostering creativity and potentially more efficient solutions.
By defining performance requirements rather than specific means, contractors take responsibility for how to meet these targets. This leads to clearer risk transfer, as contractors manage the execution risks related to design and construction within their scope.
The functional tendering process could potentially save two to three years compared to the five to seven years taken by complex large projects today. It is also expected to save the client "enormous resources" compared to today's processes.
Leinemann suggests allowing ancillary offers in tenders, as they stimulate the potential of executing companies. Ancillary offers enable bidders to propose alternative, cheaper, or otherwise advantageous solutions that were not considered in the creation of the tender.
The success of the investment packages may be at risk due to the current procurement structures. Without new thinking, Leinemann warns that the projects could fail within the existing structures. He emphasizes that medium-sized companies, which often have a particular execution competence, may face resistance from public contracting authorities who may not have enough personnel to manage the influx of large-scale projects.
Leinemann's advice comes in response to the need for quick implementation of the federal government's infrastructure measures. The planned projects are to be implemented in Stuttgart and Berlin.
Ralf Leinemann, with his expertise in construction, architecture, and procurement law, is well-positioned to guide the implementation of these ambitious projects. His approach aims to leverage contractors' expertise for innovation, cost-effectiveness, performance quality, and improved risk management, leading to overall better project outcomes.
Economic and social policy can significantly benefit from the proposed adaptation of procurement procedures for large infrastructure projects, as it aims to foster innovation, flexibility, and cost efficiency in the industry. The functional tendering process could potentially save finance and business resources compared to traditional methods, leading to the implementation of projects more swiftly.
