RT issued a statement on the project guide being prepared by the State-supported Housing Construction Centre (Varke, formerly ARA). The draft project guide is partly contradictory: it aims for affordability, but at the same time sets its own requirements that increase costs and limit the use of different contract forms at the expense of quality and innovation.
The Centre for State-Subsidised Housing Construction is responsible for implementing support for the production and basic improvement of housing built with state support. Varke is currently preparing a guide that compiles the key principles, objectives and procedures that it follows when processing support applications and assessing the acceptability of projects. The guide is a revised version of the previous Aran Construction and Planning Guide.
Many of RT's member companies work primarily as contractors in Varke projects, so the guide directly affects their everyday lives.
The predictability and fluidity of decision-making must be improved
RT considers it important that Varke's operations are predictable, open and smooth in processing. The decision-making process is currently multi-layered and includes several interim decisions, which complicates the operations of member companies. In particular, scheduling the construction schedule and resources in relation to the different phases of Varke's decision-making is challenging.
Varke's operating methods and decision-making should be developed, streamlined and simplified. In addition, a tripartite dialogue between Varke, the developer and the contractor would promote the implementation of projects and speed up lead times.
The guide's obligation remains unclear
The guide does not clearly state which of the items it contains are mandatory and which are merely recommendations. Applicants and operators should be able to assess the requirements unambiguously and objectively without the risk of surprising or subjective interpretations.
Quality requirements should not exceed the level of law and regulations
The building code should not set requirements that exceed the planning regulations or the essential technical requirements laid down in the Building Act, for example for accessibility. The guide states, among other things, that when assessing projects, attention is also paid to the diverse use of building materials. This is an inappropriate requirement that is not based on the law or building regulations, although the regulation regarding materials can sometimes stem from the planning regulations.
Contract types should not be restricted
The guide restricts the use of negotiated contracts, alliances, KVR projects and target price contracts, as well as bundling of basic improvements. The guide leaves the approval of collaborative models to case-by-case consideration. The entries in the guide regarding contract types are also partly contradictory: on the one hand, competitively bid projects are emphasized in new construction, but on the other hand, Varke can also accept negotiated contracts for special reasons.
RT believes that all competitive procedures and collaborative models in accordance with the Procurement Act should be accepted as such. They can produce an end result that is as cost-effective, high-quality and sustainable over the life cycle as a traditional competitive contract.
See also
Statement on the draft project guide for the construction of state-subsidized housing
More information
Anu Kärkkäinen
Director, Economic Policy Affairs
anu.karkkainen@rt.fi +358 50 337 6699Building Construction Industry Association