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Landesbetrieb LBB implements building plans for Germany-based foreign troops

- Annual savings of 18m Euros for US-Forces -

The Landesbetrieb LBB is engaged in construction planning and building for foreign forces based in Rheinland-Pfalz from Great Britain, France and the Netherlands as well as NATO. Especially vital areas for the US-Forces are the regions surrounding Ramstein, Spangdahlem and Baumholder.

The Landesbetrieb LBB takes on the operational tasks of construction project lead management and delivers planning, steering, and surveyor services comparable to an architectural or construction engineering contractor. It does not, however, have its own construction equipment or construction crews, and therefore does not perform commercial construction activities.

The Landesbetrieb LBB consists of one headquarters and seven regional offices. It is lead by a managing director with significant legal matters supervised by an administrative council.

As a public awarding authority, the Landesbetrieb LBB complies completely with the provisions of public tender offer, contract awarding and bidding procedures.

Through the restructuring of the State Construction Authority in 1998, two organisations were created: The Landesbetrieb LBB and the business unit ABB. The ABB (Abteilung  Bundesbau) is a business unit of the Executive Revenue Office Koblenz and assumes the role of awarding authority in relation to the Landesbetrieb LBB for construction projects of the German federal government and foreign armed forces based in Rheinland-Pfalz. While the ABB has directive authority in regards to the technical specifications of the contracted construction projects, the Landesbetrieb LBB is ultimately responsible for the operational implementation of the construction projects. The ABB has technical oversight authority for federal construction projects of the German federal government.

US-Forces save well over 18m Euros annually

The foreign forces based in Rheinland-Pfalz enjoy clear financial advantages through their use of the state construction services. For example, the US-Forces, with annual construction projects valued at nearly 160m Euro awarded to the Landesbetrieb LBB, were able to realise savings of more than 18m Euros in comparison to the mandatory regulated fee structure according to the HOAI (German mandatory fee structure for architects and engineers). The rates (for new construction 5.6% and for conversions 7.5% of the calculable net project costs) offer a significant savings compared to the usual 17 to 25 % (which varies with project size and complexity) they otherwise would have had to pay to an independent architectural firm. The balance is remitted to the Landesbetrieb LBB by the German Federal Republic.

In addition, the Landesbetrieb LBB offers the consistency of a fixed contact person to its clients: the assigned project manager and his/her colleagues from the various technical fields have an established relationship to the client and the US-Forces benefit from accumulated know-how.

Legal authority for cooperative ventures between foreign troops and the Landesbetrieb LBB

Construction projects for the foreign troops based in Rheinland-Pfalz are conducted according to German laws and regulations in coordination with the respective German authorities. The basis for this cooperation is the NATO Statute for Foreign Troops and the Additional Agreement to the NATO SFT.

The unitary policy in regards to the procedures for construction projects in accordance with the respective national laws, codes and budgetary policies was created by the Principles of the Construction Contracting (German:ABG) in 1975, a bilateral implementation of the Additional Agreement to the NATO Statute for Foreign Troops. The ABG governs the Administrative Cost Recovery (German:VKE) regulations through which favourable conditions for the contract awarder in fee payments for the services of architects and technical engineers are permitted.

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© Landesbetrieb Liegenschafts- und Baubetreuung (LBB), Rheinstraße 4E, 55116 Mainz