NVA and Rere būve reach settlement in fire station construction dispute

The Latvian State Regional Development Agency (NVA) and construction firm SIA "Rere būve" have resolved a contentious dispute concerning the construction of several fire stations. The settlement, reached in the Economic Affairs Court, mandates that "Rere būve" will pay NVA 369,817 euros in damages.

As part of the agreement, "Rere būve" relinquishes its claims, while NVA will utilize a previously withheld penalty of 132,269 euros towards the direct losses incurred. The company is also required to provide a warranty guarantee of 290,950 euros for the warranty period, which will be credited against the damages. The remaining balance of 78,867 euros will be paid by "Rere būve" in monthly installments over 12 months.

The legal battle began when NVA announced the termination of the contract in August 2024, citing "Rere būve's" persistent failure to meet its contractual obligations and complete the Dagda and Ilūkste depots, as well as supply necessary equipment for the Priekule and Iecava depots. The construction company had faced delays, with initial deadlines for the Ilūkste and Dagda projects repeatedly pushed back. The original contract, signed in August 2021, was for the construction of four objects totaling 7,274,788 euros.