NCC to sign a new, major framework agreement with SALAR to build apartment blocks

NCC is one of two construction companies that has qualified as a supplier in the second part of the Swedish Association of Local Authorities and Regions’ (SALAR) major housing procurement and is eligible to sign a framework agreement with SALAR.

The four-year framework agreement, with an option to extend for two years, will come into effect in April 2017. This part of the framework agreement relates to the construction of four to six-story apartment blocks with the possibility of up to eight-story apartment blocks. Municipalities around the country have expressed interest in up to 10,000 housing units and the estimated value of the total framework agreement is approximately SEK 10 billion.

“This is gratifying news that indicates we have a really strong offering in apartment blocks that can be adapted to each municipality’s individual needs for high-quality housing, with a focus on sustainability, at a reduced cost and with shortened construction times,” says Henrik Landelius, Head of NCC Building Sweden.

SALAR’s procurement of permanent apartment blocks is the first national procurement in Sweden that municipalities will be able to use from 2017 and onwards. The procurement has been implemented in two parts and NCC was also one of four companies that was awarded a framework agreement in the first part, which was for two to four-story apartment blocks. That agreement was concluded in January.

The procurement pertains to turnkey residential housing units built using standardized construction methods. This enables construction times to be reduced and construction costs to be brought down, yet the residential buildings can still be constructed with high quality in terms of architectural design, sustainability and technical properties.

An agreement freeze now becomes effective for ten days during which no agreements may be concluded. Following this, an agreement will be signed between the suppliers and Kommentus Inköpscentral AB (SKI), which is implementing the procurement on behalf of SALAR. The agreement is expected to be signed in March.