Three years after an arbitration case concerning the construction of the Storstrøm Bridge was filed, there is still no resolution. The claims have grown, and the case has developed into one of the country's largest construction disputes.
Behind the contractor consortium SBJV is the Italian company Itinera, and in the company's recently published annual report, it is stated that a decision is not expected until the end of 2028.
A time assessment that project manager at the Danish Road Directorate, Niels Gottlieb, agrees with.
SBJV - Storstrøm Bridge Joint Venture - filed the case in October 2022. Since then, the case has just gotten bigger and bigger. In May 2023, a supplementary complaint with new claims was filed. The Danish Road Directorate responded in July 2024. And in July, a so-called reply came back from the Italian main contractor.
The financial claims continue to rise, and the claim now stands at 4.58 billion kroner.
- But just because a contractor makes a claim, it doesn't mean they are right, says project manager Niels Gottlieb from the Danish Road Directorate.
Overall, this means that the financial claim is approaching the entire bridge's construction budget of 4.7 billion kroner.
Significant additional costs
The background for the contractor's claim is a mix of rising raw material prices, COVID-19, the war in Ukraine, and delays in approvals of the bridge's design. SBJV claims that this has resulted in extensive additional costs and longer construction time. The Danish Road Directorate rejects that the contractor is entitled to the large amounts and refers to the fact that the contract was entered into at a fixed price.
Along the way, there has been a dispute over the technical assessments. In May 2023, SBJV submitted updated reports on delays, design errors, and economic consequences. The Danish Road Directorate attempted to have the reports dismissed because they were expert assessments obtained by one of the parties, but in February 2024, the arbitration court ruled that they should be included in the case. The Danish Road Directorate was also ordered to pay legal costs for this decision.
Impossible to predict the outcome
Concurrently, the Danish Road Directorate has put a framework agreement out to public tender for technical assistance and advice to be used in the arbitration case. The agreement includes, among other things, technical review and assessment of project material as well as the preparation of reports that can be used in the case.
At the court meeting on 18 February 2025, an expert was appointed for the first questions in the case, but the parties could not agree on a detailed schedule. The case was therefore postponed to the next meeting, which took place on 3 June 2025. Here, the framework for the further process was discussed, but without a final resolution.
According to law professor Peter Arnt Nielsen from CBS, arbitration is a completely normal way to resolve conflicts in construction cases. And in large construction cases, it can quickly amount to a lot of money and take a long time.
He will not comment on the specific case.
- Anything is possible in an arbitration case. One party can win on all points. Or lose. It can also end up somewhere in between, he says.
36 cables need to be replaced
The latest disagreement concerns a number of the 36 cables that connect the bridge deck to the pylon, which according to the Danish Road Directorate do not meet the requirements and need to be replaced. The replacement will cost a double-digit million amount, and according to Niels Gottlieb, this dispute is also very likely to become part of the arbitration.
SBJV does not wish to comment on the financial claims beyond what is already stated in the annual report. Instead, the consortium emphasises that the arbitration case and the construction are kept separate. And that the work continues.
The arbitration case adds to a series of challenges that have characterised the Storstrøm Bridge since the beginning. Originally, the contractor consortium consisted of three Italian companies: Itinera, Condotte, and Grandi Lavori Fincosit. Along the way, the latter two withdrew, partly after cases of corruption in their home country. And left Itinera alone with the responsibility for the construction.
The project has also faced challenges with the working environment and working conditions. A significant number of orders have been issued by the Danish Working Environment Authority, and there have been cases of disputes regarding wages and employment conditions.
According to the Danish Road Directorate, the goal is to open for car traffic later this year and for trains in 2027.
