π Tender Overview
General building projects with a total of 1400 homes can have acquisition sums approved which are up to 20 per cent. above the maximum amount. In addition the maximum amount is exceptionally regulated by 5.5 per cent.The construction industry is characterized by considerable capacity and price pressure. The increase in construction activity and the very high energy prices have led to sharp increases in the prices of building materials. This development makes it difficult for public housing organizations to keep the total construction costs below the statutory maximum amount for general construction.In order to put a damper on the capacity pressure in the building and construction sector general renovation projects have been postponed and public housing organizations have been given the opportunity to postpone the planning and tendering of new buildings until a later time when the capacity pressure in the building and construction sector subsides.However there are a number of general construction projects which have been ready to be built since the turn of the year but which have not been able to be kept within the maximum amount. In order to get these buildings under way the possibility is opened that the municipal council can approve an acquisition sum of up to 20 per cent. higher than the maximum amount. The maximum amount is also exceptionally increased by 5.5 per cent. to take into account the price development since the turn of the year.I am very happy that with these initiatives we can create the opportunity to build more public housing. The government has a clear ambition to create more mixed cities with more public housing. Therefore in a time of rising construction prices we have found it necessary to deviate from the maximum amount in a way that is balanced in relation to the pressure on the construction industry says Minister of the Interior and Housing Christian Rabjerg Madsen.