LITHUANIA Law and Practice Contributed by: Evaldas Klimas and Vygintas Kuprys, WALLESS
ages in the agreement or by requesting the ten - ant to cover the amount of damages through documented evidence. In some cases, the parties agree that the tenant is also responsible for any non-direct damages suffered by the landlord (such as the difference between the existing lease fee and the potential fee obtainable from third parties under market conditions). However, this practice is not widely adopted due to the prevailing conditions of the lease market, where tenants typically hold a stronger negotiating position. Landlords typically hold security deposits post - ed by tenants. These security deposits are usu - ally kept in cash. 7. Construction 7.1 Common Structures Used to Price Construction Projects Private developers use their own forms of con - tracts and the various wording is settled dif - ferently in every project. When it comes to the public sector, Red and Yellow forms of FIDIC 1999/2017 are most frequently used for large projects. Developers with Scandinavian capital prefer to use a YSE form, which is also used in the market. Construction projects are usually priced using a fixed-price model, especially when it comes to general contracting. Other structures would be priced using the maximum guaranteed price and unit price. The market trend was to employ a construction management company that employs several contractors or to employ one general contractor with a nomination of suppli - ers or contractors of certain works for a fixed price. The changes in construction regulation
which came into force in November 2024 will secure the market model of working by a form of general contracting. 7.2 Assigning Responsibility for the Design and Construction of a Project Control and full responsibility for the design pro - cess are usually assigned to the designer until the construction permit is received. The owner is only required to provide initial information and approve the solutions. After the construction permit is issued, the prep - aration of the work’s design documentation is usually assigned to the contractors who perform the construction works. During the construction, the contractors are responsible for the proper performance of the construction. However, the construction results are reviewed by the technical engineer and the designer, who ensure that the construction fol - lows the solutions in the design documentation. The market trend is to employ a design and con - struction management company that not only selects the designers and contractors but also supervises them. 7.3 Management of Construction Risk Market players use various methods to manage construction risks. Employers request contrac - tors to secure all risk insurance (CAR) to cover their damages. A wide list of insurance and war - ranties over standard representations and war - ranties (REPs) is requested. Employers also request an advance payment guarantee and a contract implementation guar - antee, which is 5% to 10% of the contract price and retain 5% to 10% of the contract price, which is released when a three-year guarantee
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