Front-loaded cost monitoring for the service centre project

The municipal service centre project is an expensive and long-term undertaking. We are monitoring the progress of the project with some concern regarding the costs. The appendices do not include the project agreement for the municipality’s part of the implementation. Similarly, Appendix 2, which would show the rental liabilities for the various parties, is missing from the appendices.

Therefore, the Central Groups (Centre Party, Swedish People’s Party and Christian Democrats) and TuPu propose that the council oblige the Group Division to proactively monitor the development of the project’s cost structure during the planning, development and implementation phases. The Group Division must report on cost monitoring to both the municipal executive board and the council. Any changes to the project plan that have a significant cost impact on the rent must be approved by the Group Division. If the parties’ rental responsibilities change from the previous proposal, they must be brought to a political decision before the project is implemented.

The Implementer shall prepare an Implementation Plan for the Property, which shall include the final rent level for the Property (total rent/year) and the Parties finalise the lease terms so that the Client can decide whether to accept them and proceed to the Implementation Phase in accordance with section 6.2 or terminate the agreement in accordance with section 6.4.

…sentence processes and the time they require. In this case, the design costs of the Object incurred during the Development Phase shall be included in the total rent under the Lease Agreement and shall not be charged separately to the Client.

6.3 Reporting of
development phase costs The Implementer undertakes to keep records and report the actual costs of the Development Phase to the Client in such a way that, when the Client exercises its Exit Right, the amount of the actual costs can be verified without dispute. The client has the right, if they so wish, to appoint an independent KHT auditing firm to verify the amount of the costs.

8. Change management
8.1 Changes during the development and implementation phase

If the Client requires changes to be planned during the Development Phase that are not presented in the final request for tenders procurement documents and the change cannot be implemented even by developing the Project without affecting the rent offered by the Implementer, this constitutes a change to the Development Phase. Changes during the Development Phase may be implemented in accordance with the approval process and schedule described in the Development Phase project plan.

If the Client requires changes to the Implementation Plan during the Implementation Phase that affect the amount of rent, the rent will be adjusted accordingly.

The aforementioned change in the implementation phase applies if it is not possible to implement the change even by developing the project without it affecting the amount of rent offered by the implementer.

The Implementer shall not implement any changes to the Development or Implementation Phase until the Parties have agreed on the content and impact of the changes to the Development or Implementation Phase on the rent on the grounds specified in section 8.2.

8.2 Calculation criteria for rent changes in the development and implementation phases

The calculation criteria for changes affecting the lease agreement level during the development and implementation phase are as follows:

During the development and implementation phase, any jointly agreed additionsand alterations may be added to the rent in proportion to their net cost impact on the Project costs, amortised over the 15-year lease term at an interest rate of 6%, or deducted from the rent using the same calculation principle. However, the net cost impact of the aforementioned additional and alteration work may not exceed a total of EUR 1 million (VAT 0%), and any amount exceeding this shall be paid by the tenant directly to the landlord against a separate invoice.

The additional work and alterations described above in this section that reduce the amount of rent and lower the level of the lease agreement may only be carried out at the request of the tenants (the municipality of Tuusula and HOK-Elanto). It should also be noted that a change in the lease agreement level may also be due to a requirement imposed by the competent authority.

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