Faroese municipality selects more expensive roadwork bid despite objections

The technical committee of Tórshavn Municipality has chosen a higher-priced bid for road expansion in Kaldbak, overriding recommendations from municipal engineers, Kringvarp Føroya reports.

Work has begun to widen a road in the village of Kaldbak after two bids were submitted—one for 1.1 million Danish kroner and another for 1.5 million kroner. The selected bid was 350,000 kroner more expensive than the lower offer.

The municipality’s technical director and civil engineer had advised accepting the cheaper bid and entering an agreement with that contractor. A verbal contract was initially made with the lower bidder, but the following day, the contractor was informed of an “error” and told the higher bidder would receive the job instead.

The decision was made by Tórshavn’s technical committee, prompting Mayor Elsa Berg to request an external legal review. The legal assessment concluded that municipal officials are bound by procurement regulations and risk personal financial liability for improper decisions. The municipality may also face compensation claims from the lower bidder.

The case has sparked a heated dispute between transport officials in Tórshavn’s city council. Bergur Robert Dam Jensen, chair of the technical committee, has strongly criticised Mayor Elsa Berg. Neither has commented further on the matter.