Tórshavn city council overrides procurement recommendations twice in six months

The Tórshavn city council has twice in the past six months rejected its own procurement committee’s recommendations and awarded contracts to higher bidders, according to a report by Faroese public broadcaster KVF.

In the latest case, the council overruled its committee’s selection of Sauna Dypp as the winner of a tender for a wellness facility in Álakeri, instead awarding the contract to Saunagos—the second-ranked bidder. Sauna Dypp, which had initially been informed it won the 1.9 million krona contract, is now suing the city for lost revenue and 42,750 krona in bid preparation costs.

A nearly identical dispute unfolded earlier this year over a 90-meter road-widening project in Kaldbak. Frank Hellisdal submitted the lowest bid at 1.1 million krona and was initially awarded the work, only for the council to reverse the decision in favor of David Nordendal’s higher offer of 1.45 million krona. Hellisdal did not challenge the decision.

A nine-page legal review commissioned by the city, authored by attorney Jónas Tór Næs, concluded that council members are bound by procurement law and risk personal financial liability for breaching contract terms or ignoring lower bids without justification. The opinion also warned that such actions could expose the city to compensation claims from overlooked bidders.

The road project dispute sparked heated exchanges between council members, particularly Mayor Elsa Berg and Technical Committee Chair Berg Robert Dam Jensen. A separate clash over Saunagos’s permit for a seaside sauna at Argir saw a council meeting adjourned early amid sharp disagreements.

Councilor Tróndur Sigurðsson has called for the Kaldbak road issue to be revisited at today’s session.