Bids opened for Brákarborg preschool renovation in Reykjavík as costs surpass estimates

Renovation bids for the Brákarborg preschool in Reykjavík have been opened, but construction work has not yet commenced, as the deadline for submitting bids expired today. All submitted bids exceed the initial cost estimate.

The preschool, which was shut down last summer, is expected to complete renovations by early February next year. The bidding process was originally scheduled to end on November 7 but was extended to today. The project’s budget stands at nearly 200 million Icelandic krónur, with the highest bid reaching just over 270 million, while the lowest is approximately 223 million krónur from the company Ístak.

Brákarborg was relocated in the autumn of 2022 to refurbished premises at Kleppsveg 150-152, previously occupied by a retail store. The renovation costs for the new location approached 1.3 billion krónur, and following various complaints, an assessment of the building was conducted, revealing that structural reinforcement is necessary.

Moving forward, the preschool’s renovations are anticipated to take at least six months. Meanwhile, uncertainty remains in other areas, such as the Westfjords, where severe weather conditions are expected, and ongoing discussions regarding labor agreements are taking place across different sectors. As the country navigates these challenges, economic forecasts suggest potential inflation decreases, signaling a complex landscape ahead for Iceland.