Tallinna Reaalkooli new building costs surge 36% to €30 million in two years

The new building of Tallinna Reaalkool (Tallinna Reaalkool) has ballooned in cost from €22 million to €30 million over two years, a rise of nearly one third. The project drew public attention after Tallinn's mayor criticised a €27,000 teachers' room cabinet, but the building's architect argues the real question is why the overall budget grew so dramatically. City officials cite archaeological excavations and changing market conditions as key reasons for the increase.

The new building of Tallinna Reaalkool has seen its projected cost rise from €22 million to €30 million over the past two years, a near-third increase, drawing sharp criticism from city leaders and raising broader questions about how Tallinn manages large construction projects.

A €27,000 cabinet sparks debate

The controversy burst into public view after Tallinn mayor Peeter Raudsepp highlighted a single piece of furniture: a teachers' room cabinet ordered for approximately €27,000. Speaking on the programme Otse uudistemajast on Wednesday, Raudsepp argued the purchase exemplified wasteful spending that results from commissioning bespoke architectural solutions instead of using standard designs.

«This is what happens when officials accept everything that comes in. When they are given an architect and interior designer and simply approve whatever is proposed. A tender is won by the only bidder, who can then dictate the price. And every time something needs to be changed or replaced, you have to go back to the same interior designer,» said Raudsepp.

Architect defends the cabinet

Johan Tali, the lead architect on the project from Molumba architecture bureau, pushed back against the mayor's characterisation. He explained that the item in question is not a conventional cabinet at all, but essentially the entire teachers' room furniture unit, three metres tall and ten metres wide.

«It has a wardrobe section, a small kitchenette, storage space for teaching materials needed at the science and natural sciences competence centre. There is a refrigerator; I believe there was even a printer inside. It's actually made of melamine, nothing gilded or built from exotic materials,» Tali explained.

The architect also pointed to a structural reason for the high price: the city began procuring furniture only at the start of summer, with a requirement that everything be in place by the end of summer.

«It is quite difficult to find any supplier willing to take on the responsibility and risk of delivering everything on time when all of Europe is on holiday and neither furniture manufacturers nor material suppliers are eager to answer the phone. That inevitably adds a risk premium to the price. Only one bidder came forward and was able to dictate their terms,» Tali said.

Budget grew for multiple reasons

The Tallinn City Property Department confirmed the total cost of the new building stands at €30 million, covering construction, interior furnishings, design and archaeological excavations. Two years ago, the same department had projected the cost at €22 million.

Marko Sula, head of the department's real estate development and management division, attributed the increase partly to archaeological findings and partly to geological conditions on site. The medieval fortification wall location of the school had already caused surprises, ERR's Aktuaalne kaamera reported in autumn 2023 that excavations uncovered the remains of a once-thriving medieval suburb, with historians particularly excited by a well-preserved everyday porridge pot.

Tali noted that the city property department had unrealistic expectations from the outset about how much it would cost to construct a comparable building in the city centre next to a medieval fortification wall. Archaeological work alone came in one million euros over initial estimates.

Deputy mayor calls for better processes

Andrei Kante, Tallinn's deputy mayor for education (Centre Party), acknowledged the problem is not unique to this project.

«In this case we are talking primarily about the furnishing side, and that side is indeed very expensive. The internal processes at the city property department could have been better organised. The tender should have been issued much earlier so that other bidders could also participate,» Kante said.

He confirmed that the department has since hired a new specialist to manage interior design procurement. Kante also signalled a possible shift in approach: rather than always demolishing old school buildings and constructing new ones, the city may consider renovation combined with standard design solutions in some cases.

«As deputy mayor for education, my personal interest is that the school is completed on time. So right now we can only acknowledge that this particular project became more expensive and move forward. We cry and we pay,» Kante said.