Construction Company Challenges School Contract Award in Vilnius

Marek Sadowski
Marek Sadowski
Reports on procurement law, review decisions and how the rules change. Based in Warsaw.
2 Min Read

This article examines the legal challenge by Veikmės statyba against a public contract award for school construction in Vilnius.

Background of the Contract Award

In early 2026, Vilnius City Municipality signed a contract with construction company Naresta for the construction of a new 480-student gymnasium near Santaros Clinics. The contract, valued at €23.5 million, followed an earlier agreement with competitor Veikmės statyba, which was voided due to the company’s failure to provide a required bank guarantee. This situation highlights the complexities of public procurement, where compliance with specified conditions is crucial for contract validity.

Veikmės statyba has initiated legal proceedings, requesting Vilnius District Court to declare the contract with Naresta invalid and to compel the municipality to sign a contract with them instead. Court representative Lina Nemeikaitė confirmed that the case is currently in the preparatory stage for examination. The company argues that their initial contract should have been upheld had they met the necessary conditions, thus raising questions about the fairness of the procurement process.

Implications for Public Procurement

This case underscores the importance of adhering to procurement regulations and the potential for disputes when conditions are not met. The public procurement system is designed to promote competition and ensure that contracts are awarded fairly; however, challenges like this can lead to delays in project implementation. As the legal proceedings unfold, the outcome may influence future contract awards and the practices of local authorities in managing public construction projects.

IN NUMBERS
21.2
million euros for initial contract with Veikmės statyba
23.5
million euros for contract with Naresta
168
million euros borrowed for nine schools and kindergartens

The ongoing legal challenge by Veikmės statyba serves as a reminder of the critical nature of compliance in public procurement and the potential ramifications for all parties involved.


Reported from lrt.lt, 2026-08-13. The Tender Wire is published by Otnox.

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Reports on procurement law, review decisions and how the rules change. Based in Warsaw.
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