Dispute over increasing bridge costs at Turun Logomo advances to arbitration

A dispute regarding the rising construction costs of the bridge at Turun Logomo is set to advance to arbitration. The city council addressed the initiation of arbitration proceedings related to the bridge’s design contract on Monday. This matter was marked as confidential.

The bridge, which crosses the railway yard of the main railway station, has seen its estimated costs significantly increase, attributed by the city to delays in planning, errors, and deficiencies. The city listed several grievances, including failure to adhere to the agreed timeline, insufficient resources, and unqualified, inexperienced personnel. Ultimately, the cost of the bridge reached €21.6 million, approximately €13 million more than the initial financial decisions suggested. The bridge was completed in November 2021, nearly three years behind schedule.

Initially, the city contracted VR Track for the bridge’s design. However, responsibility shifted through acquisitions first to NRC Group and then to Sweco. In spring 2021, the city and Sweco reached a settlement agreement, which proposed compensation of around €950,000 to the city. The city’s original claim was nearly €5 million, which Sweco disputed both in basis and amount.

A condition set by the city stipulates that “if Sweco violates agreed obligations, Turku has the right to terminate the settlement agreement and assert claims against Sweco for all breaches of contract without limiting those claims.” The case is now proceeding to arbitration, a process typically faster than traditional courtroom proceedings. Arbitration awards are final and cannot be appealed.

Kimmo Suonpää, the city’s construction director, declined to comment due to the confidentiality of the matter, and Sweco did not respond to requests for comment.