NVA and "Rere būve" Settle Fire Station Construction Dispute; Company to Pay €369,817

The parties have reached an agreement, with "Rere būve" withdrawing its claims and NVA agreeing to use the previously withheld €132,269 penalty for covering direct damages. As a result, the company will pay an additional €369,817.

Under the settlement, NVA will reduce its insurance claim from €601,222 to €369,817. "Rere būve" must provide a warranty period guarantee of €290,950, which will be offset against the damages. The remaining €78,867 will be paid in 12 monthly installments of €6,572.

After fulfilling all settlement conditions, "Rere būve" will not face other consequences from the termination of the 2021 contract, except for obligations to fix construction defects during the warranty period.

The dispute arose after NVA terminated the contract in August 2024 and demanded a €601,222 penalty. The builder was accused of failing to complete the Dagda and Ilūkste depots and supplying equipment for the Priekule and Iecava depots.

"Rere būve" filed a lawsuit in September 2024, seeking protection of its rights and interim relief, which the court granted. According to the builder's work schedules, the completion dates for the Ilūkste and Dagda projects were repeatedly postponed – from May 2024 to June, then to August and October. NVA concluded that even these deadlines were unattainable given the pace of work.

The contract was signed on August 2, 2021, for a total of €7,274,788 (including VAT). "Rere būve" is part of AS "Rere grupa," with beneficial owners Didzis Putniņš and Ainārs Pauniņš. In 2024, the company reported turnover of €9.82 million and profit of over €2 million.