Big building projects governed by EU rules

The ‘legal hitch’ behind the delay of the project to build a new police station in Tórshavn was that the project was tendered in accordance with EU rules. The Faroese Builders’ Union said last week that the incompatibility with Faroese rules, regulations and practices discouraged Faroese contractors from applying for preapprovals.

Danish trade minister Rasmus Jarlov has now revealed that the Danish state is bound by EU regulations when tendering big construction projects such as this one.

According to Jarlov, all building projects costing more than DKK 41.3 million in 2018-2019 must be tendered in accordance with EU rules. This limit is reviewed every two years.

Dispensations can only be made if no contractors bid on the project. In such a case it would be possible to negotiate further details with Faroese contractors, provided that no fundamental changes are made to the original tender.

Four construction firms received pre-approval, but in the end only two bids came in.

Danish construction firm Ommen og Møller won the tender to build the new police station at Húsagøta in Tórshavn. The estimated total project price is DKK 138 million.

Translated by prosa.fo