The City of Espoo and SRV terminate their agreement for the basic renovation and extension of the Tapiola swimming hall
The City of Espoo’s Premises Department and SRV have decided to terminate their agreement for the basic renovation of the Tapiola swimming hall. Solutions for reaching the client’s target budget were sought during the project’s development phase. However, in spite of close operation, no solution was reached on the project’s financial objectives during ten months of extensive development work. The cooperative project management contract will therefore be terminated at the development phase.
A development phase contract was signed for the project in January 2023. At that time, the client’s target budget for the project was approximately EUR 42–46 million, of which SRV’s share would have been about EUR 32 million. The project had not been entered into SRV’s order backlog.
“The project’s costs rose significantly above the target budget as a result of changes in the market situation. Financially feasible solutions for implementing this technically demanding project were sought in close cooperation and with an eye to the long term, but the desired quality level could not be achieved at current market costs. It’s unfortunate, but as a construction company, we must also evaluate each project from the perspective of financial risk management and we do not take uncontrollable cost risks,” says Marko Räisänen, Unit Director at SRV.
“The City of Espoo and SRV cooperated well during the development phase, but we did not come to a common view of the cost level in the design and implementation solutions. In this situation, it is not possible for Espoo to continue cooperation, when the risk would have been drifting into a result that exceeds the budget. The City of Espoo is now continuing the planning for the contract calculation and is tentatively tendering the project using the traditional contract form, most likely during the spring of 2024,” says Olli Isotalo, Urban Environment Director for the City of Espoo.
The swimming hall has been closed for the past six years. Condition studies detected a highly advanced alkali-aggregate reaction in the foundation and subfloor structures of the building – chemical reactions between the aggregate and alkali moisture in the concrete have resulted in cracks. The structures will therefore have to be extensively demolished and rebuilt. The aim was to preserve the most valuable parts of the premises: the load-bearing pillar structures of the roof in the main pool area, the roof dome and its support beams, and the diving tower. Another structural engineering challenge was how to prevent future alkaline-aggregate reactions.
Additional information:
Olli Isotalo, Urban Environment Director, City of Espoo, olli.isotalo@espoo.fi
Marko Räisänen, Unit Director, SRV, marko.raisanen@srv.fi