This article examines the legal challenge by Veikmės statyba against the Vilnius municipality’s contract award for school construction.
Background of the Contract Dispute
In early 2026, Vilnius municipality signed a contract with construction company Naresta for the construction of a new 480-seat gymnasium near Santaros clinics. However, competitor Veikmės statyba has initiated legal proceedings to have this contract declared invalid. The dispute arose after Veikmės statyba was initially awarded a similar contract worth €21.2 million, which did not come into effect due to the company’s failure to provide an adequate bank guarantee. This guarantee was required to be at least 5% of the contract value, with a term of at least 19 months, conditions that Veikmės statyba did not meet.
Legal Proceedings and Implications
Veikmės statyba has requested the Vilnius District Court to annul the contract with Naresta and to compel the municipality to sign a contract with them instead. According to court representative Lina Nemeikaitė, the case is currently in the preparation stage for examination. The municipality’s decision to proceed with Naresta for the €23.5 million project followed the invalidation of the earlier contract with Veikmės statyba. This situation highlights the complexities involved in public procurement processes, particularly when it comes to meeting the stipulated requirements for contract awards.
Funding and Project Scope
The planned gymnasium is part of a broader initiative involving the construction of nine schools, funded through loans from the European Investment Bank (EIB) and the Nordic Investment Bank (NIB). The total project value is estimated at €177 million, with 95% financed by the banks and 5% by Vilnius Development Company (VVK). Facilities at the new school will include sports areas, playgrounds, and social spaces, aimed at enhancing educational infrastructure in the region. The involvement of multiple financial institutions underscores the significance of these projects in improving public services.
IN NUMBERS
The ongoing legal challenge by Veikmės statyba illustrates the competitive nature of public procurement and the importance of compliance with contractual obligations. As the court proceedings unfold, the outcome may have implications for future procurement practices in the construction sector.
Reported from lrt.lt, 2026-08-13. The Tender Wire is published by Otnox.
