Reputation to be considered in Litgrid public tenders

Litgrid manages the high voltage electricity transmission grid. All construction and reconstruction works of the grid are performed by its contractors chosen through public procurement procedures. Based on the Law on Public Procurement, companies participating in public tenders may be subject to certain minimum qualification requirements in order to assess their capacities and capabilities.

“The electricity transmission grid is a complex and hazardous infrastructure, and our projects are specific. Therefore, we must ensure in advance that all of our contractors are prepared to manage the possible challenges and risks. The updated qualification requirements aim to encourage energy companies to raise the bar for the quality of their works, acquire new skills, and create the preconditions for international competition,” said Vidmantas Grušas, Litgrid Board Member and Director of Transmission Grid Department.

The minimum qualification requirements have been applicable in tenders of Litgrid thus far. They were detailed out in order to evaluate the competencies of the contractors more precisely. The updated requirements include the requirement for the public tender participants to have experience in the specifically identified main works of the project. The participants will also be assessed as to whether they have the experience to manage projects of a similar complexity and volume. Such detailed requirements for company experience will help to more effectively evaluate both technical and project management competencies.

The main works of the project must only be performed by a contractor itself – it will not be possible to transfer them to subcontractors. Such a requirement will help to better control the process of the project. In choosing the contractors, Litgrid will also pay attention to their reputation – companies with strict professional violations will not be allowed to participate in the public procurement process. The purpose of such a requirement is to increase the contractors’ responsibility for the quality, safety and professional ethics of their work.

“The minimum qualification requirements of Litgrid are some of the most demanding among contracting authorities. Safety and reliability requires the highest level of quality. We require this from our own specialists, and expect from the contractors we work with,” said Mr. Grusas.

It is expected that the updated requirements will stimulate local and international competition among the contractors. Companies currently lacking the experience required, are expected to cooperate with international partners and thus acquire new experience. In ensuring international competition, Litgrid also plans to publish calls for public tenders in English in addition to Lithuanian.