THE KDB DISMISSED THE DBR INITIATIVE TO CHANGE THE CONTRACT - THE METRO BUILDER IS SEEKING THE LEGAL OPTIONS

In its decision the Public Procurement Arbitration is rejected the submissions of the DBR Metro Project Directorate amending of the contract of the Eurometro LTD. FIDIC engineering and the contracting authority was fined for HUF 5 million, and a public procurement procedure was required. DBR is examining the possibility of an appeal against the decision.

At the end of 2009, the DBR initiated the process, first because of KEHI’s obligation to ensure the independence and continuity of the FIDIC engineering activities, on the other it became necessary to eliminate Eurometro Ltd. Advisory functions, and the project implementation delays is also an important reason. Due to the FIDIC contract system and the requirements of EU funding the documents related specific engineering tasks are needed.
The decision once again points out, which has been already raised by others, the gap between the Hungarian Public Procurement Law and the FIDIC conditions of contract. The DBR with only the project in mind, and as to ensure the continuous availability of engineering, examines the legal possibilities for appeal.

The engineer's contract, the KDB is dated 8th of February 2010, number D.858/15/2009, and the DBR submission is available on the www.metro4.hu website.

The engineer’s role:
The Metro 4 project first phase in 1998, and supplemented with the second phase in 2006 was created under the contract for more than 10 years ago with the Eurometro Ltd., which carries out the so-called FIDIC civil engineering construction contracts of a total 16 tasks, for slightly more than 7 billion forints. The first period saw in decisive project management consultancy tasks (preparation, tendering, planning, licensing etc.), but today almost exclusively in the FIDIC civil engineering activities. Tasks include the reviewing, proposing the plans of the contractors, proposals to the contractor for their adoption/rejection, conducting the handover of working places, the weekly meetings of the co-operation, day to day control of the works, to check on the contract for the set of tasks, requirements compliances, participation with the authorities, administrations, consulting utility companies, assisting in the so-called interfaces, checking on the schedules prepared by the contractors, monitoring negotiations, organizing work schedule, and on completion by the contractors, to verify the work, the submitted invoices. More and more important task is to review the changes and claims of the contractors, making decisions if they are right. The engineer is supporting the client in the principal disputes with his detailed knowledge, case descriptions, which was acquired from the beginning of the project. The engineer is as important as the client or the contractor.

(The related official documents can be downloaded below.)

Budapest, 14th of February 2010
DBR Metro Project Executive
Related files: 4333-17-2009.pdf | | 4333-2009.pdf