Our Integrated Project Alliance
Attention construction companies - Presentation of the Market Info Equipment Engineering!
Answers to the questions posed in the market info on award package 2 ‘Equipment technology’ on 17 September 2024.
In mid-September, there was an internal DB webcast with our CEO Dr Richard Lutz. He confirmed that all projects in the existing network are financially secured up to and including 2027. We are very optimistic that the projects after this period will also be financed, as we are already starting to plan them. We still have an unprecedented budget from the federal government at our disposal to achieve the goals of the Strong Rail for Germany programme.
Numerous overhead line installations (OLA) are required along the entire route for the railway equipment of the S-Bahn line. Subdividing the OLA into partial lots does not make sense due to the location and interfaces. In order to meet the planned completion dates, the work will be bundled into one contract award package and carried out at the same time. This ensures a standardised construction method and simplifies subsequent maintenance. The logistics and technical dependency of the trades also make further division impractical. Bundling the 50 Hz, telecommunications, OLA and underground cable construction trades into one package increases flexibility, coordination and efficiency. The short planning period and tight time frame require smooth co-operation without interfaces between the equipment disciplines. Only by working from a single source is it possible to avoid disruptions and make optimum use of the shutdown periods.
The planning of the trades with the entire project alliance will take place between the start of the contract and actual execution. Before further execution from 2026, underground cable construction and cable laying to clear the construction site are also planned.
In contrast to conventional tendering and the associated interfaces, there is no difference in the rail partnership model. We therefore do not prevent a wider range of bidders.
Timetable S-Bahnline S4
On March 5, 2024, we presented the final alliance packages for the partnership model in sections 2 and 3 of the S-Bahnline S4 as part of our second market information. You can find the presentation here.
Now the time has come: in this overview or in the document under downloads you will find all further details and the dates of all packages for the project alliance. Join us and shape the S-Bahnline S4 together with us!
Principles of Integrated Project Alliances
- early involvement of all relevant stakeholders in our value chain as project alliance partners
- expertise competition instead of price competition
- everyone pursues a common goal with the intention „Best for Project“
- common standard for action and success
- shared success due to active collaboration between all project partners
- joint cost and risk management
- innovative solutions by integrating planning and construction at an earlier stage
- cost-effective, efficient, and low-risk project realisation
A major project is like a constellation of cogwheels.
Every action and decision has an effect on every element in the project. The concept of the integrated project delivery aims at coordinating this constellation of cogwheels, thus, harmonising the execution of the project.
Project Process
Elements of the Remuneration Model
Manufacturing costs
- cost reimbursement of the alliance partners based on expenditure according to "open-book pronciple"
- on the basis of invoices or equivalent evidence
Contribution margin
- award rates (general overhead, profit) of the alliance partners
- determination in competition
Participation contribution (bonus/malus)
- Contribution with which alliance partners participate in project risk (bonus or malus)
- determination in competition (percentage value as part of price criterion)
Integral Cost Calculation and Risk Management
- Cost Composition
Principles of integral cost calculation
- target costs must be realistic and set so they can be undercut
- target costs are set on the basis of the manufacturing costs
- target costs include the identified and assessed risks
- target profit for alliance partners = profit of exact attainment of target costs
- if final costs = target costs,
then profit = target profit
- if final costs = target costs,
- price share of general business costs and profit are set proportionally
- target price = target costs + general business costs + profit
- if the target costs are undercut, an additional bonus is achieved
- if the target costs are exceeded, a malus is realised
Figure 1: Requirements for integral cost calculation
Figure 2: Components of integral cost calculation
Integral Risk Management serves the purpose:
- of a joint elaboration of the planning, costs, schedule, opportunities, and risks of the project
- of assessing all risks and opportunities in the form of workshops before the construction phase begins
- of enabling the early involvement of all alliance partners in the risk management which is jointly supported and accounted for
Organisational Structure
Requirements for the Project Alliance
Become our Alliance Partner in our Major S4 Projectt S-Bahnlinie S4
We are looking forward to jointly realise the integrated project alliance and delivery in the S4 project.
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