Marbella Social Hub Innovation Center Concludes with Overrun Costs
The Marbella Social Hub, a center for entrepreneurship and innovation, has concluded with an overrun cost of 18% over the awarded amount. This practice is becoming increasingly common in the Marbella City Council. Interestingly, the construction company won the public tender by reducing the tender amount by almost 14%. It seems there isn’t a single project contracted by the Marbella City Council that doesn’t end with a significant overrun cost, within legal margins, but in a manner that is becoming constant.
Overrun Costs Detected in Recent Projects
The latest overrun cost detected by this digital platform was for the rehabilitation of a building in Trapiche Norte, which was converted into the “Marbella Social Hub”. The project was tendered for 588,009.24 euros, awarded at 507,569.58 euros, but ultimately cost 600,478.01 euros. Between these amounts, there is a reduction by the construction company of 13.68% and a subsequent overrun cost of 18.30%.
Details of the Tender Process
According to documents reviewed by Marbella24horas, 16 companies submitted bids for the tender, and three offers were discarded for being recklessly low. Among the remaining thirteen, Grulop 21 was on the edge, but ultimately won with a reduction of 80,439.66 euros on the tender amount (13.68%). No other company could offer such savings to the municipal coffers.
Contract Modifications and Overrun Costs
However, during the course of the work, two contract modifications were made, which increased the budget by 92,908.43 euros (18.30%). Therefore, the advantage offered by this company, which earned it the highest score as the most economical, was not such in the end, because the work cost more than expected.
Concerns Over the Practice of Overrun Costs
It is striking that a company adjusts its reduction almost to the limit to avoid being reckless, wins the tender, and then is paid an overrun cost above the value it promised to reduce. The works of the “Marbella Social Hub” concluded in March 2023, but it is not yet operational because a regulation governing its use is still to be developed.
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The Marbella Social Hub is still awaiting the regulation that will govern its use.
