Posted on Oct 16, 2020 at 5:28 pmUpdated Oct 16, 2020 5:35 PM
With its 25 million euros in orders for the Olympics, Mathis has hit the jackpot. She will work equally well for the Olympic swimming pool of Saint-Denis, the Arena of the Porte de la Chapelle in Paris, the Olympic village, or the Grand Palais Ephémère in Champs-de-Mars. The Alsatian wooden roofing company, which will mobilize 60 of the 200 employees there for three years, is one of the winners of the gigantic market that the 2024 Olympic Games must offer to SMEs.
La Solideo, which manages the equipment for the Olympic Games, has made a commitment that 25% of the total amount of contracts will be awarded to small and medium-sized enterprises and to enterprises belonging to the social and solidarity economy (ESS). And in terms of integration, 10% of the hours worked must be reserved for the groups furthest from employment (against 5% in traditional markets).
Ambitious figures hit by the health crisis. The share of the pie is tempting for the owners: the construction of the equipment, of which 80% will be done in Seine-Saint-Denis, represents 5 billion euros of markets. And the Olympic Games markets excluding construction (catering, communication, security, furniture, consulting, etc.) managed by the Cojo are estimated at 3 billion. But weakened by the Covid-19, will companies be able to respond? “Companies are interested, you just have to see the success of the last Meet Up (Editor’s note. 450 participants and 1,000 appointments made), but do they have sufficient cash to keep up? “Asks someone close to the file.
No impact of Covid-19 on the schedule and cost of the work
“We are exactly on the schedule announced in October 2017 and this despite the Covid” assured Thursday Nicolas Ferrand, general manager of Solideo, during a presentation of the new models of the works. No additional cost either. “The additional cost of the Covid will be around 1 to 4%, mainly for the masks and the distancing protocol, but will be absorbed by the contracting authorities as general contingencies”. All the building permits will be filed by the end of the year for the 62 Olympic objects, with a start of construction work in February 2021. Then it will be gone for 33 months of sites, which will mobilize 10,000 employees.
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Business groups
As for the Solideo, we want to be reassuring on the mid-term review. “Of the 530 million excluding tax of contracts awarded to date by all the contracting authorities, 109 million go to 377 small and medium-sized businesses throughout France and abroad, which represents 20.4% of the share” explains Nicolas Ferrand, Managing Director of Solideo. “However, we are not yet in the very large markets that the promoters will launch and which will start in six months”. In terms of integration, “65,000 hours were achieved” on the objective of 2 million hours in integration “ie 3% of the 10% targeted”. But the Covid-19 could muddy the waters, with a risk of business failures not yet visible but ready to surge.
Because companies must have strong backs to claim these markets. Delivery times are extremely constrained – the deadline is end of 2023 – and tight clauses. “The Olympic Games markets are much more demanding than a traditional market, the penalties for delay are higher, with very close monitoring of the state of progress, guarantees in the event of abandonment of the site” testifies Frank Mathis, CEO of the company of the same name. The SMEs-VSEs of Seine-Saint-Denis, which concentrates 80% of the projects, are playing big “For the moment, companies are holding on, but there is obviously a strong concern over the coming months, there will be breakage ”admits Danielle Dubrac, president of CCI 93.“ We are going to favor groups of companies so that they are more solid ”. The consular chamber was chosen on the occasion of a recent call for tenders to support the local fabric in strengthening itself (in training, in resources, etc.) to respond to the markets for services and supplies.
Monitoring work by work
La Solideo and Le Cojo have spared no efforts to seek out these small bosses since the end of confinement: Meet Up in Paris, resumption of the tour of the regions, 2024 Business platform providing real-time information on calls for tenders, webinar. Because the schedule of work should be more profitable to them. After the structural work contracts which do not necessarily give them pride of place (earthworks, demolition, etc.), future contracts will favor smaller, more accessible lots. “The biggest market in terms of value is yet to come, we are only at 8%” insists Antoine du Souich, director of strategy and innovation at Solideo.
Concerned about the fallout in jobs on their territories, the elected officials keep an eye on the promises of the Games. “The construction of the Stade de France did not benefit the inhabitants enough, this time, with the looming economic and social crisis, the Olympics must also be repairers” warns Stéphane Troussel, president of the Department of Seine- Saint-Denis, who declares himself “very vigilant on commitments”. Monthly monitoring, site by site, integrating feedback from local authorities and each client will be made automatic in early 2021.
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