Building Our Future - Cost

Constructor Selection Process

Seven constructors participated in a blind, three-stage, fixed price bidding process beginning in March 2014. In the first stage, bids were accepted on the architect's original detailed specification. In the second stage, we asked the bidders to suggest cost-saving measures including structural changes, use of different materials and new suppliers. The adjustments reduced costs but without lowering construction qualities.

For the 3rd round of bidding, we asked three finalists to compete. One of them has been selected provisionally, pending contract negotiations with the school lawyer, Rafael Cabrera, a highly reputable lawyer with years of experience in this area. Until the contract has been negotiated we feel it prudent not to reveal the name of the provisionally selected constructor.

During the selection process, we achieved some important economies, partly by creative and collaborative discussions between our architect and the constructors, and partly due to pure competition. The range of offers shifted from 2.29M – 2.98M euros to 1.90M – 2.00M euros at the end of negotiations with the modified projects preserving all of the essential qualities of the architect's original design and specification.

In all, we saved roughly 400K euros over the course of the bidding process.

However, in selecting our constructor we took into consideration much more than price. We looked at the constructors' portfolios, the quality and detail of their calculations for their bids, the promises they made and the credibility with which they made them, their company profiles and their solvency and willingness to guarantee the final result.

The contract will include a guarantee (aval), a penalty clause for late completion, a retention 5% of the total payments until 1 year after project completion, and any other clauses that our lawyer decides upon.

Project Costs

The costs are as follows:

Concept Amount
Construction contract (fixed price) € 1,984,498
Temporary modules € 60,000
Subtotal - Miscellaneous costs € 240,590
Contingency € 30,000
IGIC (7%) € 157,856
Licencia de obra (4% of construction contract) € 79,380
Total € 2,492,324

Bank Selection Process

We ran a similar process to select the bank, starting back in December 2013. We approached three banks, identified an ICO fixed rate load, 15 year term, no opening commission, as being the best for our needs, and let the banks compete with each other for our business. 

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