Reconstruction of the former insurance company in Česká Lípa is getting complicated, the city has no contractor

Česká Lípa - The planned reconstruction of the former insurance company building in Česká Lípa is becoming complicated; the city still hasn't found a contractor. Although eight candidates applied for the competition announced by the municipal office last autumn, most were disqualified by the committee due to non-fulfillment of conditions. Only one contractor remained - the company BREX with a price of nearly 88 million crowns including VAT. However, the company refused to sign a contract, citing the situation in the construction market; thus, the city must repeat the competition. Mayor Jitka Volfová (ANO) said this in response to a query from ČTK today.

The municipality initially expected that reconstruction could begin as early as this year, but the situation in the construction market, which worsened with the war in Ukraine, complicated everything. "It was initiated by the COVID pandemic, and the war in Ukraine made it worse; contractors can't predict where prices of certain materials will rise," Volfová added. According to her, it's not just about prices; contractors are also concerned that due to supply issues, they will not be able to meet deadlines in the contract.

The building, constructed in the 1990s for Česká pojišťovna, has been empty and deteriorating for eight years. The city purchased it in April 2019 for 18 million crowns from a private owner who was in bankruptcy. The municipality aims to relocate staff from several municipal buildings to this facility, which will bring significant savings. "The offices for personal documents, driver's licenses, vehicle registration, the misdemeanors department, the transportation department, the education, culture, sports, and tourism department, internal audit, and the trade licensing office should all move there," added Deputy Mayor Martin Brož (ANO).

When acquiring the property, the municipality estimated that necessary adjustments would require up to ten million crowns, but ultimately the building will need a fundamental renovation, which according to the designers' estimates will cost ten times more. The reasons are more extensive modifications, as well as complete insulation of the building, including window replacements, which in the future should reduce energy costs by 60 percent. The project also includes the use of solar panels and the construction of a retention tank for rainwater.

According to Volfová, the contract for the reconstruction of the insurance company is not the only one that the municipal office in Česká Lípa has to repeat. They will also be looking for a contractor for the skate park, as well as a company that will ensure the maintenance of public greenery from mid-August. The city must also repeat the competition for the maintenance of urban roadways, as they have not yet found a contractor there, and the current contract will expire on June 30.