Rīga Airport considers dismissing construction firm over missed deadlines

Riga Airport is considering terminating the contract with the construction company "Rere meistari" Ltd for the reconstruction of the technical services building due to the unsatisfactory pace of construction, Riga Airport told LETA October 7.

The airport stressed that the pace of construction is unsatisfactory - seven months after the deadline, the volume of completed works has reached only 56%.

The original contract deadline was set for November 6, 2023. However, according to the contract amendments in force, the current handover date was January 31, 2024.

The airport explains that almost all possible measures have been taken within the framework of the contract to accelerate the construction of the facility. This includes negotiations with the owners of Rere and subcontract managers, tripartite and quadrilateral agreements on direct settlements with the contractors.

However, despite the steps taken, the pace of construction is still unsatisfactory and the airport is also considering terminating the contract and imposing a penalty for late payment.

The airport points out that the initial contract amount was set at EUR 9,662 million excluding value-added tax (VAT), however, following amendments to the design and consequently the contract, the current contract amount has increased by almost EUR 260,000 to EUR 9,922 million excluding VAT.

Latvian Television's program "De facto" previously reported that there are still problems with meeting deadlines and the ability to attract sufficient resources at a number of construction sites where the tenders were won by the companies of JSC "Rere Group". In several cases, the contracting authorities have already been forced to go so far as to conclude tripartite contracts with subcontractors in order to have someone working on the sites, the program reported.

According to Firmas.lv, Rere meistari had a turnover of EUR 21.404 million last year, an increase of 18.9% compared to 2022, and made a loss of EUR 390 313, compared to a profit the year before.

Rere meistari was registered in 2004 and has a share capital of EUR 1.794 million. Rere meistari is a company of the Rere Group. The company is wholly owned by Rere Group, whose largest shareholders are Ainārs Pauniņš and Didzis Putniņš.

Seen a mistake?

Select text and press Ctrl+Enter to send a suggested correction to the editor

Select text and press Report a mistake to send a suggested correction to the editor

Related articles

More

Most important