Lucerne: Controversy over additional costs for EWL site

Only at the beginning of March, the Lucerne City Council had applied to the Grand City Council for special credits amounting to CHF 133 million for the development of the EWL site (IB reported). Now, the Business Audit Committee of the Grand City Council (GPK) wants to have the application rejected. If the parliament follows the request, this will automatically lead to a planning stop according to an agreement with the total contractor. In addition, the validity of the price increase announced by the total contractor will be reviewed, said EWL Areal AG in a media release.

The GPK justified its request among other things with the new cost ceiling work price of the project. Accordingly, the costs for the realization would increase by about CHF 31.5 million, i.e. by about 16%. "The massive cost increase is in clear contradiction to earlier confirmations of the total contractor and is unacceptable for EWL Areal AG," writes EWL Areal, which is acting as the developer. "Due to the fact that the cost ceiling work price offered was still confirmed in January 2023, EWL Areal AG could not and should not have expected such a massive price increase, especially since the bases with which the price increase is partially justified have been known for a long time."

"Accusations lack any factual basis".

Halter AG has reacted with its own media release. In it, it writes: "The (...) accusations that have now been made, which come as a surprise to Halter AG, lack any factual basis and are irritating." The work price calculation presented in March 2023 takes into account additional costs from items that were not included in the total contractor scope. Halter criticized the fact that no total contractor's scope of work contract was concluded after the contract was awarded. Changes to the project were already foreseeable at that time. There were then far-reaching changes in the orders of the various users, which made rescheduling necessary. The additional costs had been calculated and confirmed. In the course of time, contaminated site and subsoil assessments had also been updated. Such items and their risks were not part of the total contractor's offer or the original work price. "If - as originally intended - a TU work contract had already been concluded, these would undisputedly have been charged to the client as supplements." Halter admits that the planning team was not without fault. For example, the schedule had to be changed in the summer of 2022 due to misinterpretations. However, the change in construction time was also partly due to changes in the order.

Pause until there is clarity on costs

According to the GPK, the discussion about the project will be continued "when the situation has been reassessed by EWL Areal AG and there is clarity about the costs". The city council emphasizes that the city is not the developer of the Rotpol project, but a private-law corporation with a minority city shareholding. The direct influence is limited, but it is important to the city council "to be able to lay the foundation for sustainable, future-oriented neighborhood development with the Rotpol project."

EWL Areal AG is made up of one third each of the shareholders City of Lucerne, Allgemeine Baugenossenschaft ABL and EWL Energie Luzern. Together they are realizing a new security and service center including apartments on the site. EWL and the existing municipal departments (including environmental protection, the geoinformation center and the civil engineering office) will have new premises on the site. In addition, the Lucerne City Fire Department, the Pilatus Civil Defense Organization, the Municipal Greenery Department and bases for the Road Inspectorate will be located on the approximately 20,000 square meter site in the future. (aw)