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Litgrid invites contractors for cooperation in renewing typical agreements

Lithuanian electricity transmission system operator Litgrid is renewing the terms of typical construction and design agreements in order to ensure smoother cooperation with its contractors and the long-term quality of infrastructure projects.
Litgrid manages high-voltage electricity transmission grid. All construction and reconstruction works of the grid are performed out by Litgrid contractors. Litgrid signs at least 30 such contractor agreements annually with companies that win its public procurement tenders.
“Over the last few years, Litgrid has implemented particularly complex projects of international power links, while at the same time reconstructing the grid. The intensity and complexity of this period has allowed to assess the project management process and the performance of the requisite amendments ensuring the long-term reliability and quality of the infrastructure projects” said Karolis Sankovski, Litgrid Management Board member and Director of the Strategic Infrastructure Department.
Renewing typical contractor agreements Litgrid aims to clarify the liabilities of both itself and the contractors. The new terms will apply for all construction works on the grid including new construction, reconstruction and turnkey projects. The draft of the typical agreement provides that the work schedule, according to which all construction work is performed, should be drawn up within 20 days upon the signing of the agreement, and the construction manager must be present at the worksite at all times during the construction in order to ensure that all safety and quality requirements are met. The draft also sets conditions for termination of the agreement and forfeits, and clearly defines the conditions for the signing of the provisional acceptance agreement for the work performed.
Besides the renewal of its typical agreements, Litgrid has also introduced improvements related to the project planning, means for ensuring maintenance, workplace safety standards and control. In 2015, Litgrid renewed the minimum qualification requirements for companies participating in its public procurement tenders, cost-benefit analysis is performed when assessing the participants. The goal of all these improvements is to increase the quality of contract work and ensure the safety of the people working on the grid.
The requirements set by Litgrid for its contractors were presented to members of the Lithuanian Electricity Association in January. The members of the Association have been invited to deliver their notes and proposals with regard to the draft of the typical agreement by email until February 10.
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