We are excited to invite the market to provide insight into our strategy for the upcoming Smart Procurement of the €1bn + MDP (Major Development Plan) for construction works at Keflavik Airport, where we aspire to procure our supply chain earlier than usual in the design process in order to optimise delivery. ​This covers the SLN21, East Pier and North Terminal buildings detailed below. ​

This Market Engagement exercise is scheduled as follows ​

  • March 2023

    Market Engagement (follow-up interviews) - Informal discussions to review your comments and clarify and issue​

  • April 2023

    Formalise Isavia Procurement Strategy​

  • From Quarter 2 2023 onwards

    Launch Procurements (indicative)​

  • February 2023

    Commence formal Market Engagement (advertised on TED) - We would like you to respond to the Market Engagement document and the questions to finalise the strategy​

The MDP Opportunities:

The approach being considered for the MDP (Major Development Plan) is that Isavia will procure a number of key supply chain Delivery Partners, through long term framework agreements (one for each of the following categories), to deliver the overall MDP by working in an integrated team with Isavia and all other stakeholders, as demonstrated in the diagram below.

Delivery of the overall MDP will start with the SLN21 project, but as the delivery of the SLN21 projects continues, the frameworks will then be used to progress the East Pier and then North Terminal projects, as and when they are initiated. ​As such, the framework agreements are likely to be for an initial 4 year term with an option to extend.

We need supply chain Delivery Partners to work within an integrated delivery team, to influence design decisions in terms of buildability, cost and schedule. The framework contracts require key resources, collaborative working, and a solution focused mindset, and will include a mechanism to initially call off professional services, under a PCSA (Pre-Construction Service Agreement). ​

With costs and schedule agreed the projects will seek Board approval to call off work orders for the manufacture and installation of the individual works packages (components and systems etc) that will have been fully integrated with other interfacing packages.​ The package integrators along with designers will facilitate the integration between works packages.​
​Contracts will be fair & equitable with key principles focussing on teamwork (a collaborative approach and behaviours), incentives to balance risk and opportunity with Key Performance Indicators and achievement milestones driving performance related bonuses and risks assigned to party best able to manage them. The performance requirements design, and concept guardianship responsibility will be with Isavia design consultants. Each of the delivery partner’s will be responsible for the design and installation of their works meeting the said performance requirements.​

The Delivery Partners will be completing the designs under PCSAs (Pre-Construction Service Agreements), called-off against the frameworks, and then proceed to provide a price to deliver the works under a further call-off, subject to Isavia being able to accept the price for the works, schedule etc.​

Our incumbent Design Consultants are employed already for RIBA Stage 2 and part of Stage 3, and will continue in the role of design guardians and integrators between the various package providers.​

For the earlier packages, i.e., the Early Works, Steering Contractor and Envelope packages, the current thinking is for the Isavia designer to complete design up to RIBA Stage 2 and partially through Stage 3, after which the Delivery Partner will be required to develop the design through the remaining RIBA stages and deliver the works.​

The Delivery Partner will take design responsibility for the design they produce for the systems they will supply, however the Isavia designer will continue in the role of design guardians and integrators between the various package providers.​

For the later packages, i.e., the MEP, Fitout and Finishes packages, the current thinking is for the Isavia designer to complete design up to RIBA Stage 3 before going to tender, after which the Delivery Partner will be required to design to end of RIBA Stage 4 and then build under a two-stage strategy where RIBA Stage 4 is fully developed before the works are called-off under the framework agreement. ​

The proposed MDP (Major Development Plan) projects, with more details in illustrations 2 to 4.

Indicative Construction Timescales:

  • SLN21 – 2023 to 2028
  • East Pier – 2026 to 2032
  • North Terminal – 2028 to 2034.
Major Development plan.
Major Development plan.
Illustration 2 - SLN21 project
Illustration 2 - SLN21 project
Illustration 3 - East Pier
Illustration 3 - East Pier
Illustration 4 - North Terminal
Illustration 4 - North Terminal