7th meeting of the EU Peers Spain community: high-quality projects and trusted contractors

More than 70 organizations conform the EU Peers Community in Spain. On Monday, October 13, they met to share how they approach the project design and selection of companies phases (Millin & Bullier, 2021). This is the second of a cycle of four meetings in which the Community shares experiences of the entire housing renovation process.

On this occasion, three members of the Community presented their experiences: 

• Opengela Offices in Bilbao, that presented their participation processes, and criteria and procedures for the tenders of renovation projects and works for the buildings where they are part of the Homeowner’s Association.  Presented by Txari Vallejo from Viviendas Municipales de Bilbao.
• Acciona's neighbourhood renovation projects, that showed the technical systems they offer and the business models under which they are marketed: ‘Renovation agent’, Financing developer and Energy services company (ESCOs). Presented by Miguel Ángel Zamorano of Acciona Energía.
• Getafe Rehabilitation Office, that explained how they communicate the different technical solutions to the neighbors and generate collaboration fora between companies and customers in their municipality. Presented by Ana Mª Guarnizo from EMSV Getafe.

After the presentations, a moment for questions and debate was opened in which the speakers were able to contrast how they solve certain challenges. 

Technical solutions

Technical solutions for renovation are already widely proven: insulation, efficient heating and cooling, renewable energies, universal accessibility, natural lighting systems... However, the neighbors do not know the advantages and limitations of each system, so technical support is essential.  

Through meetings with neighbors and informative materials, the speakers explain what each solution consists of, their impacts and reasons for choosing one or another technology. In short, they advise and accompany in the process of co-design or choosing the best possible project. This training process also generates confidence in the One-Stop Shop (OSS) and empowers residents to make decisions.

Tenders and contracting

The tender process for the project and works that each speaker presented was different. Viviendas Municipales de Bilbao (VVMM Bilbao) has developed a procedure like that of public tenders for Homeowners Associations, of which VVMM Bilbao is also a homeowner. The process – which can be exported to other contexts – consists of four steps:

1. Drafting of the specifications. VVMM Bilbao offers the Association with examples of criteria and tender’s models, which include various clauses and technical conditions for the preparation of the project and project management. Among the conditions are the minimum required to access subsidies. Other criteria is co-designed with the neighbors (aesthetics, functionality, distribution of the evaluation of the criteria...). 
2. Publishing the tender. With these specifications, the tender notice is published through the Public Sector Procurement Platform. The level of detail is that of an advanced preliminary project, including an initial budget, the methodology for the development of the works and communication with the neighbors.
3. Assessment and approval. The offers received are presented to the neighbors, with an initial technical assessment by the OSS. After scoring and discussing the technical aspects, the budgets are presented. This avoids choosing the cheapest project from the first moment and seeks the balance between quality and affordability. 
4. Follow-up and administrative tasks. The OSS is responsible for the administrative procedures and drafting of the final contract, as well as enforcing the contract. This last point is essential, because by strictly monitoring the fulfillment of the contract, a good final result is ensured.

Although competitive bidding is successful in Bilbao, other EU Peers members are having problems with tenders being void, even if the proposed fees are high. Among the solutions mentioned is collaborating with larger companies or generating a network of collaborators on a local scale. 

For its part, EMVS Getafe accompanies and advises the neighbourhood to choose and contract, but it falls on the Homeowners Association and the company to contract. Among other tools they use to help communities is the www.renueva.five.es/ website, which allows them to simulate the renovation of their buildings.

Acciona Energía – being a private company – contracts directly under three business models: 

• Renovation agent. They accompany the property to choose and hire other suppliers. Normally this model is adapted to the needs of less determined Homeowners Associations or with vulnerable households.
• Financing promoter. With a single contract they offer the turnkey project, including financing the initial investment. 
• Energy Services Company (ESCO). With a single contract, they offer the turnkey project and the building's comprehensive energy management.

Collaboration with the value chain

From the debates arises the need to have a network of close and competent companies. This is especially important for public administration, limited by competition rules and unable to make direct contracts. 

To facilitate collaboration, EMVS Getafe has two key instruments: 

• Framework agreement with local construction companies. Although the agreement does not allow them to make direct contracts, they do have a list of contacts that they can offer to the Communities of Owners.
• Local renovation fair. At this fair, they invite the signatories of the agreement and the city's Homeowners Associations to get in touch and show them the different possible technical solutions for their buildings. 

As for VVMM Bilbao, its collaboration with the sector arises from the process of tenders and works itself. Some companies, after carrying out the first project, bid for new tenders with more capacity and experience, so the sector is becoming more professional and collaboration is becoming more and more fluid.

As it is a private company, Acciona Energía is not limited by competition rules. For this reason, it has a list of approved suppliers and strict transparency criteria from which it chooses who to subcontract. This allows them to have greater control over their value chain and the final quality of the process and the works. However, the main challenge they face is the lack of manpower, especially for isolation solutions and elevator installers.

Conclusions 

The three speakers agreed that municipal support is essential. The municipal initiative can take different forms (political support, aid programs from the municipal budget, creation of an OSS, support for vulnerable neighbourhoods, identification of priority neighbourhoods, tender in batches, etc.). In addition, the municipality is not alone: there are resources available to citizens that they can take advantage of, such as the networks of offices of professional associations (CSCAE OAR, CGATE...).

In addition, it was concluded that accompaniment means quality: a project that is not accompanied by a trusted renovation agent risks having problems in the process and having a bad result. 

Finally, attendees were reminded of upcoming community meetings: 

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