Riga, February 10, 2026 — The Latvian Competition Council (KP) has raised concerns over potential competition infringements in municipal procurement procedures for multi-apartment building renovation and energy efficiency projects, following multiple signals of excessive pricing and possible anticompetitive conduct.
The authority said it has sent a formal letter to all Latvian municipalities outlining recommendations and warning against procurement practices that may distort competition in renovation tenders.
Procurement Risks in Renovation Tenders Identified
KP urged municipalities to conduct thorough market research before launching tenders, independently prepare technical specifications, and consider independent construction cost assessments. Where in-house expertise is lacking, municipalities were advised to involve independent experts rather than industry participants to reduce conflict-of-interest risks.
The authority also cautioned against allowing bidders to draft technical specifications for tenders in which they later participate, describing such practice as categorically unacceptable. It warned against artificial narrowing of competition through technical requirements or using procurement rules to indirectly favor specific bidders.
Municipalities were further advised to consider cancelling tenders where bids significantly exceed cost estimates, particularly when participation is limited.
Prior Enforcement Action
KP noted that it has previously uncovered a prohibited agreement in renovation and energy efficiency projects, where two construction companies divided thermal insulation contracts for residential buildings. In that case, the authority imposed fines totaling €108,472.36.
The authority reminded municipalities that failure to react to signs of collusion — including similarities in bids or persistent lack of competition — may be assessed as facilitating a cartel or breaching competition neutrality principles. Such inaction could also constitute negligent performance of official duties.
KP encouraged contracting authorities to use its publicly available “Cartel Signal List” screening tool and to consult directly with KP officials in cases of uncertainty. It also invited municipalities to participate in free training sessions aimed at identifying indicators of prohibited agreements.
The authority said the findings will inform future enforcement and oversight efforts in public procurement markets.
Source: https://www.kp.gov.lv/lv/jaunums/pasvaldibu-iepirkumi-par-eku-renovaciju-nonakusi-kp-redzesloka
