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Conflict over construction contract for tunnels - opportunity for former company

Snake traffic is a common sight in Garmisch-Partenkirchen. Residents hope for the Kramer Tunnel. The cancellation by one company delayed construction, but it now has a chance in the new tender process.

The B23 is to bypass the town center of Garmisch-Partenkirchen with a tunnel. (Archive photo)
The B23 is to bypass the town center of Garmisch-Partenkirchen with a tunnel. (Archive photo)

- Conflict over construction contract for tunnels - opportunity for former company

Dispute over new contract award for Kramertunnel construction in Garmisch-Partenkirchen may give previous contractor another chance. This is the outcome of an oral hearing at the Bavarian Higher Regional Court (BayObLG).

The original contractor had ceased work and terminated the contract last year due to disputes over payments but wanted to participate in the new tendering procedure as part of a new consortium. The state construction authority opposed this in court.

No prospect of success for complaint

However, the judges at BayObLG stated, according to a spokesperson, that the immediate complaint by the Free State, acting on behalf of the public client, had no prospect of success. The decision to exclude the consortium did not meet the high requirements set by national and European law for the exclusion of a bidder, the court said.

After a comprehensive review of the facts and the law, and a longer interruption, the Free State withdrew its complaint. Therefore, the decision of the procurement chamber from April, which requires the contracting authority to re-examine the consortium's application for participation, remains in effect, the court explained.

Dispute over costs in the millions

In 2019, a consortium of construction companies (Arge) was commissioned to build the tunnel. However, a dispute arose between it and the state construction authority in Weilheim over progress payments and additional costs amounting to tens of millions, which the company claimed.

The company had billed progress payments, and the additional claims were justified by the removal of rubble, sludge suction, and measures taken during the COVID-19 pandemic. During the dispute, the company terminated the contract last year and left the construction site. The financial claims were also disputed in court, delaying the continuation of the tunnel construction.

In November 2023, the Free State of Bavaria re-tendered the remaining work. A consortium, whose representative also represented the originally commissioned Arge, participated in this. The state construction authority excluded this consortium, which then filed a request for a review with the South Bavaria Procurement Chamber. The procurement chamber ruled that the exclusion was unlawful and instructed the construction authority to reassess the application for participation. The construction authority then filed the complaint that was later withdrawn.

Tunnel aims to relieve Garmisch-Partenkirchen from through traffic

The Kramertunnel is intended to relieve the traffic-jammed Garmisch-Partenkirchen from through traffic. Vehicles regularly queue bumper-to-bumper through the town. The mountainous landscape around the Zugspitze, the Höllental and Partnach gorges, and the Eibsee attract visitors from far and wide. According to earlier statements by the construction authority, up to 25,000 vehicles drive through the town on the federal road B2 daily. The federal road B23 in the east is also heavily trafficked, where the Wanktunnel is planned as a bypass.

Despite the original contractor's exclusion from the new tendering procedure due to previous disputes, the court ruled that the decision did not meet the high legal requirements for bidder exclusion and ordered a re-evaluation of their application. Therefore, the infrastructure project for the Kramertunnel construction in Garmisch-Partenkirchen may still involve the original contractor.

The long-standing dispute over progress payments and additional costs in the millions led to the termination of the contract by the original contractor for the Kramertunnel construction, impacting the infrastructure development in the area.

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