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Litgrid renewed typical contractor agreements
2016-03-29

Litgrid renewed typical contractor agreements

The Lithuanian electricity transmission system operator Litgrid has renewed the terms of the typical contractor agreement on design and construction works. The renewed terms will be applied to newly signed agreements between Litgrid and contractors.
 
The operator of a high-voltage electricity transmission grid, Litgrid selects contractors for the grid’s construction and reconstruction works through public procurements procedures. Every year Litgrid signs at least 30 agreements with winning tenderers.
 
The renewed terms provide a clearer definition of the obligations of both Litgrid and its contractors.  The typical agreement sets out clearer requirements for drafting a schedule of works and stipulates that a construction manager must be at a construction site all the time during the construction process.  All this is aimed at enforcing safety and quality requirements at a construction site. The renewed agreement also provides for forfeiture, the calculation of fines and the terms of the agreement’s termination, with a well-defined procedure for acceptance of works by the client, the explicit terms of drafting a certificate of the delivery of construction works, prices and the terms of payment.
 
The renewed terms will be applied to all types of the grid’s construction works, including new construction, reconstruction and repair works as well as turnkey projects. The terms of the typical agreement were coordinated with the members of the Lithuanian Electricity Association (LEEA). Some clauses of the draft typical agreement were amended taking into account the comments of the Association’s members.
 
Apart from renewing typical agreements, Litgrid has also implemented improvements related to project planning, the examination of technical and work projects, ensuring maintenance, workplace safety standards and control measures. In 2015, Litgrid renewed minimum qualification requirements for companies participating in Litgrid’s public procurement tenders; the participants will be assessed by applying cost-benefit analysis. All these improvements are aimed at increasing the quality of designing and contract work and ensuring the safety of people working in the grid.
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