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Monday 21.10.2019 | Name days: Severīns, Urzula
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State Real Estate claims ReRe Būve 1 may be trying to circumvent the law

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Construction company Rere Būve 1 publicly voices desire to continue implementing the construction contract. However, the construction company’s submitted work schedule for reconstruction of New Riga Theatre has everything changed – volume of work, terms and budget, Latvian State Real Estate (SRE) reports.

«If major conditions of the contract change or increase, SRS believes the construction company thereby wants to sign a new contract without a tender instead of continuing the existing one,» stresses SRE board chairman Andris Vārna.

«This makes it possible to believe it could be an attempt to circumvent the Public Procurement Law. SRE cannot allow this.»

On top of that, Rere Būve 1 refuses to voluntarily leave New Riga Theatre construction site. SRE believes Rere Būve 1 may attempt to secure a ban on future construction work on New Riga Theatre.

SRE also notes that with the schedule Rere Būve 1 expects not only extension of the term from two years to four but also an increase of necessary funding. The new proposed plan also includes tasks that were carried out before. This includes construction of trolleybus contact lines. According to the construction company’s offer, this is planned to be done in April and September 2020. In reality, this task has already been accomplished and all relevant documents have been signed, SRE reports.

SRE believes this approach proves that Rere Būve 1 is not aware of the actual situation on the construction site. This, according to SRE, proves irresponsible attitude towards the project.

«Before we made the decision on terminating the contract with Rere Būve 1 for violations committed during the construction process, we had carefully assessed all possible legal and economic risks. We have also developed possible scenarios for litigations,» stresses Vārna.

The construction company’s behaviour so far shows that Rere Būve 1 is using all possible ways to delay completion of New Riga Theatre’s project. Nevertheless, SRE is prepared for that, the state company says.

«We foresaw that Rere Būve 1 would succeed in securing a ban on continuation of construction work, but this time, unlike it was with Museum of Literature and Music, we are stronger with our arguments this time. Still we cannot ignore that fact that the violations committed during the construction process were one of the main reasons for the termination of the contract. All arguments presented by SRE are based on documented proof on non-compliance with safety regulations by the construction company during the previous construction process. As a result of those violations the nearby buildings were damaged,» Vārna says.

BNN had previously reported that SRE plans to take over the construction site. ReRe Būve 1, on the other hand, has called this step irresponsible, adding that the construction company sees no reasons to hand over the construction site.

The construction company notes that until the civil case with SRE has been resolved the contract for the reconstruction of New Riga Theatre remains in force.


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