Latviski English По-русски
Monday 17.02.2020 | Name days: Konstance, Donats

Architect: termination of ReRe Būve 1 contract is declaration of war on construction mafia

(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RU

Architect Zaiga Gaile

Architect Zaiga Gaile calls the decision of Latvia’s State Real Estate (SRE) to terminate the contract with construction company ReRe Būve 1 for the restoration of New Riga Theatre a declaration of war against the mafia of large construction companies.

During a press-conference organized by SRE, the author of New Riga Theatre’s reconstruction project Gaile congratulated the state institution for the cardinal decision she believes to be a brave step.

«Since July 2018, when SRE signed the contract with ReRe Būve 1, it seemed to us that everything will go as planned. A year has passed and only 3% of all work has been accomplished. There will be a war, it will be difficult. This is declaration of war against the mafia of large construction companies,» reveals Gaile.

She notes the construction company in question has not taken any responsibility for the Zolitude tragedy, the fire in Riga Castle, the sinking of the new structure of Latvia’s National Museum of Art or the cracks in the old building.

«The mechanism works in such a way to finance political parties and acquire influence on all levels. The biggest violation committed by the contractor is associated with poles. SRE’s technical supervisor was on top of his objectives because he recorded all of the contractor’s committed violations. The damages caused to the neihgbouring house – cracks – are the responsibility of ReRe Būve 1. They have yet to admit their guilt. In reality, ReRe’s place is behind bars, not accusing us and threatening with litigation,» says Gaile.

As previously explained by ReRe Būve board chairman Valdis Koks, multiple errors were found in Gaile’s project. For example, the project did not detail plans for the frame poles of the building’s façade. The project also lacked any assessment of the effect construction work would have on nearby buildings.

«All people make mistakes, and I am prepared to answer for mine, but the matter with frame poles was not our mistake,» said Gaile.

SRE representative explain that the decision to terminate the contract with ReRe was made because a number of serious violations were found in the construction company’s work. Additionally, the overall quality of construction work was inadequate, plans of the construction project were not studied accordingly before commencing with work, false statements were provided to the client, deadlines were not met, and work safety regulations were breached.

«I am certain that terminating the contract was the only appropriate solution in this situation. SRE acted in accordance with good management principles, as a responsible representative of public and state interests. We were a constructive partner and we have done much to search for the best possible solution for every problem that has surfaced during renovation work. Unfortunately, we have not seen any interest from the contractor to improve the quality of work and comply with previously agreed upon terms, costs and safety,» admits Andris Vārna, chairman of SRE.

In spite of this complicated situation, SRE plans to finish reconstruction of New Riga Theatre by summer 2022.

SRE plans to organize a new tender for construction work in August. Unlike the previous tender, the principle «design and build» will be used there. One major additional requirement will be the use of the Construction Information System. Use of said system will help better control costs, shorten terms and resolve any emerging problems in the construction yard more quickly.

On 23 July, ReRe Būve 1 received SRE’s announcement on termination of the contract with the company for the reconstruction of New Riga Theatre. Valdis Koks, meanwhile, believes SRE’s decision completely unjustified, adding that his company will likely turn to court over this.

Leave a reply

  1. Alex says:

    It would be better to remove the special protections that construction companies have against poor performance. The current 10% maximum penalty is a European anomaly and once companies hit that, they have no incentive in actually doing a good job as they cannot lose any more money on the contract.

Saeima deputies put off vote on final MPC system report; say more time needed

On Monday, 17 February, Saeima’s Parliamentary Investigative Committee for Mandatory Procurement Component System did not vote on the final report. Approximately thirty minutes were spent discussing the fact that not all members of the committee have had an opportunity to study the latest redaction of the document.

Latvia’s president presents no plan for Misāne matter after meeting with heads of institutions

After meeting with representatives of the management of responsible institutions on Monday, 17 February, Latvia’s President Egils Levits did not present a clear action plan for Kristīne Misāne’s situation. However, he did stress the importance of civil activity, including the rising role online petitions.

Rubber stretching. 11th anniversary of Aivars Lembergs’ trial

Rubber stretching is a process that supposedly progresses but yields no benefits to anyone except the person doing the stretching. This allegory can be used to describe Aivars Lembergs’ trial, which has continued for 11 years.

101 applications submitted for project on preservation of cultural and historical heritage

A total of 101 applications for a total amount of EUR 1.68 million have been received for Riga City Council’s announced tender, as reported by Riga City Council chairman’s advisor Baiba Gailīte.

FKTK chief: Latvia has earned the right to avoid being «greylisted»

Latvia has earned the right to avoid being added to Financial Action Task Force «grey list», said the head of Latvia’s Finance and Capital Market Commission Santa Purgaile in an interview to Latvijas Radio on Monday, 17 February.

Latvian government signs new contract for Latvia’s pavilion in Expo 2020

The government has signed a 1.4 million euros worth contract for the construction of Latvia’s pavilion at Expo 2020, which will be held in Dubai, as confirmed by Economy Minister Ralfs Nemiro

Eurostat: Latvia’s GDP growth reportedly below average in EU in Q4 2019

When compared to the same period of the previous year, Latvia had a lower GDP than the average in the European Union in Q4 2019, according to data published by Eurostat for 20 of the union’s countries.

Signature collection for a referendum on municipal snap election regulations fails

According to provisional results from the Central Election Commission, it has not been possible to collect enough signatures to initiate a referendum over Saeima’s approved changes to municipal snap elections regulations.

Denmark plans to have Latvian citizen Misāne handed over to South African Republic

On Friday, 14 February, the Danish court ruled not to release Latvian citizen Kristīne Misāne from custody. In the South African Republic the woman is accused of kidnapping her own child, as LTV was informed by Misāne lawyer.

Week in Lithuania: retailer Maxima got in trouble, Turkish firm’s assets frozen, New Agency set up

Lithuania's concessions provided to the Polish business group Orlen, operating an oil refinery in Lithuania's Mažeikiai, have helped to improve bilateral relations but were not the key element in their thaw, Lithuanian President Gitanas Nausėda said this week.

BNN summary of the week: Levits urges protecting officials. Riga City Council toppled. Tax changes planned

The BNN gives you a summary of the key events of the past week, told in news stories of the following topics: Serious signals; Perseverance; Dismissal; Tax changes; Media supervisors; Inflation; Slower over the bridge and Belief protectors.

Prime minister orders development of proper government MPC monitoring rules

Latvian Prime Minister Krišjānis Kariņš has ordered Economy Minister Ralfs Nemiro to immediately commence work on a new mandatory procurement component monitoring project and submit it as soon as possible to ensure efficient control over the system, as confirmed by the prime minister’s office.

1 700 medics infected with coronavirus in China; six dead so far

More than 1 700 medics in China are confirmed infected with the new coronavirus. Six of them have already died, as confirmed by healthcare officials.

Number of foreign guests hosted in Latvian places of accommodation up 1.6%

2.85 million foreign and Latvian visitors stayed at Latvian tourist accommodation establishments in 2019, which is 1.6 % more than in 2018. Compared to the previous year, the number of nights spent by visitors increased by 2.6 %, reaching 5.51 million in 2019.

Experts approve Riga Central Station’s Rail Baltica regional train reception solution

A solution has been found to install a four-lane railway section at Riga Central Railway Station to replace the existing two-lane section. This will help secure not only international and airport connectivity for Rail Baltica trains but also further improve intercity and suburban train services, as reported by the project’s representatives.

Beness Aijo asks Vladimir Putin for political asylum; claims Russia has released him

Beness Aijo, who fled Latvia to avoid criminal prosecution for calls of a violent overthrowing of the government, has asked Russian President Vladimir Putin to provide him political asylum. He also claims Russian authorities have released him from custody.

Share prices plummet on stock markets over concerns for coronavirus

On Thursday, 13 February, share prices around the world plummeted as concerns over the Covid-19 coronavirus epidemic in China. London Stock Exchange index declined shortly after British Finance Minister Sajid Javid’s sudden resignation.

Saeima to add considerable amendments to Criminal Procedure Law

On Thursday, 13 February, Latvian Saeima approved amendments to the Criminal Procedure Law that provide the duty to provide truth in testimony if a person uses the right to testify.

Week’s end in Latvia will be snowy, rainy and windy

Strong wind, which may reach a speed of 25 m/sec along the coast, is expected at this week’s end in Latvia. Air temperature, however, will remain mostly unchanged, as reported by Latvian State Environment, Geology and Meteorology Centre.

National Alliance and New Unity may run in Riga City Council elections separately

Following the decision made by the New Conservative Party to run in upcoming Riga City Council snap elections separately, a similar decision will likely be made by the National Alliance «All for Latvia – For Fatherland and Freedom/LNNK» and New Unity.

Airbnb and Vilnius sign «historic» agreement, taxmen to zero in on short-term rentals

Long chastised for little regulation, Airbnb, a popular short-term rentals platform, was praised this week in Lithuania after capital city Vilnius and Airbnb inked an agreement, envisioning that from February 1 onwards Airbnb will automatically collect Vilnius city tourism tax due per night and per person and transfer the sum directly to the City of Vilnius on behalf of hosts.

Latvian parliament dissolves Riga City Council

The Saeima has decided to dissolve Riga City Council. The city council remains active, however, because the law on its dismissal will come to force the next day after its promulgation. Now President Egils Levits has ten days to make his decision on the promulgation.

Tallinn residents reject proposal to limit driving speed to 40 km/h

Residents of Tallinn have rejected mayor Mihhail Kõlvart’s proposal to limit driving speed within city limits to 40 km/h, forcing the municipality to look for other ways to control road traffic speed, as reported by Estonian public media ERR.

Journalists Kalderauska and Eglītis approved as members of National Electronic Mass Media Council

On Thursday, 13 February, Latvia’s Saeima approved journalists Ieva Kalderauska and Jānis Eglītis as new members of the National Electronic Mass Media Council.

European Parliament urges putting an end to illegal pet trade

To protect animal welfare, pet owners and public health, the European Parliament urges the European Union to come up with an action plan to put an end to illegal pet trade, BNN was informed by EP press-secretary in Latvia Jānis Krastiņš.

Do NOT follow this link or you will be banned from the site!