Contracts & trade

In a decision of 1 October (published 23 October) the Competition Council found a breach of Competition Law Article 11(1): eight funeral-sector companies coordinated participation in public tenders and submitted cover bids. Fines range from EUR 700 to EUR 22,748.05 and are payable within 45 days; the decision can be appealed to the Administrative Regional Court within one month.

Amendments to Cabinet Regulation No. 816 on public electronic procurement rules will adapt electronic data exchange so contracting authorities can more effectively check information and spot possible conflict-of-interest risks by pulling data from registers. The change aims at greater transparency in public procurement. Relevant for contracting authorities and procurement participants.

Cobalt's September review of procurement-authority and court practice concludes that contracting authorities cannot set maximum unit prices after bids are received and reject offers on that basis unless the limit was announced beforehand, and that rejecting another bidder based on an already-rejected bidder's total price is unjustified. It also notes that material changes to tender terms do not automatically require cancelling the procedure if the market segment stays the same and the deadline is extended, and that missing signed declarations cannot be filed after the submission deadline.

The piece analyses when a public procurement buyer may name a specific brand or manufacturer in technical specifications — for instance on technical or safety grounds — without unduly restricting competition. It explains when an "or equivalent" clause must be added and when allowing an equivalent solution is not possible. Relevant for contracting authorities and suppliers in procurement.

A Cabinet of Ministers protocol decision from its 13 October 2026 sitting requires state institutions to restrict signing new supply and service contracts, including consultancy and research procurement, through 31 December 2026. Companies working with state bodies should expect stricter vetting of new orders through year-end. The decision will affect outsourced service providers working with the public sector.

Amendments to Cabinet Regulation No. 419 drafted by the Economy Ministry will set a 10-working-day deadline for paying subcontractors in public construction works and clarify invoicing for deferred work. It also aims to cut duplicate paperwork where the data is already in state information systems. The change tightens payment discipline along the construction supply chain.

Amendments to Cabinet regulations drafted by the Economy Ministry would index labour costs in public construction contracts if the sector's collectively agreed minimum wage rises after a bid is submitted. The aim is to reduce contractors' exposure to unforeseen costs in long-term contracts. The change affects how prices are revisited in public procurement contracts.

The Competition Council found a prohibited agreement among nine companies that divided at least 13 public procurements for funeral services and transport of the deceased in 2020-2025, using cover bids and unjustified bid withdrawals. The contracts were worth roughly EUR 2 million. Fines total EUR 47,124.66, set at 2% to 4.5% of net turnover.

Also reported by: ifinanses.lv

Using the case of an event host whose clients have delayed final payment for months, the article explains what legal remedies a Latvian service provider has when a client breaches a contract. It notes the option of going to court to recover the debt and late-payment interest if a voluntary settlement fails.

The article covers the European Commission's proposal to replace the EU's three current procurement directives with a single, directly applicable regulation to simplify rules and cut red tape. It would introduce two main procedures and give more weight to quality criteria – at least 30% of the evaluation, 50% for labour-intensive contracts – while supporting SMEs and, in certain cases, favouring EU-origin goods and services. The European Parliament and Council are still negotiating the proposal, so the final text may change.

Sorainen's October review of public procurement developments notes that cartel collusion on tenders worth at least €750,000 (€1 million for construction) now carries criminal liability, while the Procurement Monitoring Bureau halted a hospital's mobile-communications tender after results were announced over contradictions between the technical specification and the financial offer. It also covers a new requirement to confirm that Russian and Belarusian goods are not used in contract performance, and a Senate order on interim protection in a public-transport tender.

Draft changes to Cabinet regulation No. 339, out for consultation until 22 October, would ease shared use of a leased bus among several carriers and extend to three months the period a freight vehicle leased in another EU state can be used in Latvia without re-registration.

On 15 October the Procurement Monitoring Office published a webinar presentation on administrative liability in public procurement, covering how rules are applied following recent amendments to the procurement regulation and the violations most often found in practice. Details on specific violations and changes are available only in the downloadable presentation.

The article analyses the EU regulation adopted on 11 March 2026 on cooperation between enforcement authorities supervising the ban on unfair trading practices in the agri-food supply chain.

Article 2.2 of the Public Procurement Law, in force since 9 June 2026, requires contracting authorities in any procurement to demand a supplier guarantee that no goods or services of Russian or Belarusian origin are used in performance, regardless of whether EU sanctions apply to them. The article explains the duty does not extend to regulated public-service providers such as energy utilities, and that the main way authorities verify compliance is through supply-chain checks, which require extra effort from businesses.

Also reported by: sorainen.com

The paywalled piece looks at how unplanned extra works or changes during construction-contract execution affect a company's accounting treatment and contract-risk assessment.

The article examines whether information casting doubt on a tender participant's financial reputation can justify excluding it from a public procurement. It looks at the risks a contracting authority should weigh when assessing a prospective partner's reliability.

The Procurement Monitoring Bureau summarised the third quarter's new support tools for suppliers: a "Procurement Guide for Suppliers", a data visualisation of e-catalogue transactions in the EIS system, and guidance on applying cybersecurity requirements in public procurement. The aim is to make it easier to take part in procurement and to expand analysis of procurement data.

On 7 October the official gazette published amendments to the Construction Law allowing an individual acting as a declared economic-activity provider to carry out construction work on first- or second-group residential buildings, and setting a new procedure for building projects on land owned by someone else. The law was adopted by the Saeima on 24 September and takes effect 8 January 2027, with some provisions from 1 February.

Also reported by: ifinanses.lv

On 6 October the SPRK approved amendments to the energy-sector reporting rules, removing reports whose data is no longer needed for oversight or duplicates other sources, and clarifying the content and frequency of the remaining reports. The changes follow a public consultation (30 July–28 August 2026) and a stakeholder meeting on 24 September.

An international seminar in Lithuania presented the results of the World Bank-backed technical support project "Enhancing Green Public Procurement Monitoring in Lithuania and Latvia" — three methodologies were developed to measure the impact of green procurement, for example of computers and furniture. The project builds procurement specialists' skills in both countries for assessing and reporting such impact.

The Procurement Monitoring Bureau published guidance on applying Cabinet Regulation No. 397 on minimum cybersecurity requirements in public procurement, clarifying when a contracting authority must request a security-vetting opinion from the Constitution Protection Bureau on a bidder. The opinion must be requested once the prospective contracting party is clearly identified, including in multi-stage procedures.

The Public Utilities Commission has approved October heat-energy tariff changes for 44 providers, effective 1 October - 39 increases and 5 decreases. The average tariff rises 7.78%, from EUR 86.23/MWh in September to EUR 92.94/MWh in October, driven mainly by higher fuel (wood-pellet, gas) costs, with 20 locations exceeding EUR 100/MWh. The five decreases, including in Ikšķile and Koknese, stem from more favourable fuel-procurement contracts.

The article, first in a series, summarises the Public Procurement Law reform adopted on 14 May 2026, which takes effect in three stages — 9 June 2026, 1 January 2027 and 1 January 2028. The first stage covers transitional rules on exclusion grounds, wider scope to clarify bidders' qualification documents, revised rules on contract amendments, and a new sustainable-procurement objective.

Following a summer-2026 public consultation, the Public Utilities Commission approved amendments to the rules on information required for electronic-communications market analysis, dropping or simplifying several indicators and reorganising the reporting forms. The aim is to reduce companies' reporting burden while keeping the data needed for market oversight. The change affects all electronic-communications operators that file regular reports with SPRK.

On 22 September the Cabinet adopted amendments that, from 2027, cap software-development purchases made through the Electronic Procurement System's (EIS) e-catalogue at EUR 140,000 (excl. VAT) per year per contracting authority. The cap applies only to contracts concluded from 1 January 2027 and is meant to push complex, custom IT development toward open tenders rather than e-catalogue purchases. Standard IT services, licences and non-development configuration work are exempt.

Also reported by: ifinanses.lv

On 24 September the Saeima adopted Criminal Law amendments introducing criminal liability for individuals who organise cartels in public procurement - agreeing prices or coordinating bids in large tenders (from €750,000, or €1 million for construction). Previously only companies faced administrative penalties for such agreements. Whoever first voluntarily reports a violation and assists the investigation may be exempted from liability. The change followed a Senate ruling that covertly obtained recordings could not be used as evidence in the administrative procedure.

Also reported by: lsm.lv

This COBALT review covers Procurement Monitoring Bureau decisions and court rulings from August 2026 on five points: using consolidated financial statements to prove a subcontractor's turnover, ISO certification as a bonus-points criterion below EU thresholds, refining evaluation methodology after bid submission, the relevance of low profit margins when assessing abnormally low bids, and price gaps as grounds to cancel a procurement. In a 1 September 2026 ruling (case SKA-852/2026) the Supreme Court held that large price discrepancies between bidders alone do not justify cancelling a procurement unless the authority checked whether the gap stems from unclear documentation.

The Saeima adopted, in its final reading, amendments allowing self-employed individuals to carry out construction work that needs no design documentation or only a construction notice - for category one/two residential buildings and auxiliary structures. Property registration is also simplified: builders will be able to file a single application serving both cadastral registration and Land Register title registration.

Also reported by: ifinanses.lv

From 8 January 2027, the construction-permit process will be merged into a single submission that also serves as registration with the cadastre and the Land Register — the unified building registration system in force since January 2026 will be extended to all land-ownership situations, promising faster processing of 10-15 working days and notable cost savings.

Latvia's Economy Minister met AS "Rīgas Siltums" leadership to discuss limiting the district-heating tariff rise for the 2026/2027 season - the October tariff is €80.96/MWh, but December could see it climb to €97-105/MWh (20-30%). Options discussed include larger free CO2 allowances, using Latvenergo's waste heat, and channelling part of dividends to household support, without extra strain on the state budget.

On 22 September the Cabinet of Ministers amended building regulations, introducing a phased 'zero-cycle' construction procedure and a new 'detailed sketch project' stage — most changes take effect on 1 March 2027, while the notification procedure for residential buildings takes effect already on 8 January 2027.

From 9 July 2027, freight transport in Latvia must switch from paper to electronic documentation — amendments to the Road Transport Law implementing EU Regulation 2020/1056 on electronic freight transport information (eFTI) still need Cabinet and Saeima approval.

Amendments have been proposed to the Road Transport Law that would let sole traders use a leased vehicle for commercial passenger transport with the owner's consent, aiming to ease a shortage of services and widen the pool of people who can offer light-vehicle transport services.

The Cabinet of Ministers approved amendments to construction regulations (also published on likumi.lv as No. 563 and No. 564) introducing a "0 cycle" that lets certain construction work begin before the design process fully concludes, plus an expanded sketch-project stage and fewer cases requiring Health Inspectorate or Fire and Rescue Service approval. Most changes take effect 1 October 2026, the notification procedure for private-land residential building on 8 January 2027, and the full "0 cycle" system from 1 March 2027.

The Procurement Monitoring Bureau (IUB) published guidance on applying Cabinet Regulation No. 397 in public procurement, clarifying when a contracting authority must request a Constitution Protection Bureau (SAB) assessment, how to proceed on a negative opinion, and what cybersecurity information a procurement notice must include. The guidance mainly concerns Class A information-system procurements and sits in IUB's Procurement Guide.

The Cabinet approved Economy Ministry amendments to street-trading rules, dropping the municipal-approval requirement for trading on private land in favour of a simple notification. The change affects about 30% of the 16,145 street-trading permits issued in 2025 and could save businesses roughly €400,000 a year.

The government approved amendments to the Electronic Procurement System (EIS) rules setting, from 1 January 2027, an annual €140,000 (excl. VAT) cap per institution on buying software-development services via the EIS e-catalogue. The aim is to force larger development projects into open competitive procurement and improve transparency of IT-system purchases.

Amendments drafted by the Ministry of Economics provide that municipal approval will in future only be needed for street trading on municipally owned land, not on a trader's private land, where simply notifying the municipality will suffice. The ministry estimates the change will cut businesses' administrative burden by almost €400,000 a year, since in 2025 traders together spent about €1.3 million obtaining 16,145 permits.

The article examines a restaurant planning to extend its QR-code ordering system to alcohol sales consumed on the premises. The author concludes that merely using an app or website to conclude the deal does not by itself make it a distance contract under Section 6.1 of the Alcoholic Beverages Circulation Law - what matters is whether the parties are physically present at the moment of performance. This implies the statutory six-hour delivery restriction should not apply where drinks are consumed on-site with in-person age verification.

Also reported by: ifinanses.lv

The paywalled article explains amendments to the Unfair Retail Trade Practices Prohibition Law that took effect on 19 August, setting new requirements for retailer-supplier cooperation agreements and penalties for violations.

A procurement analysis covering 2023 to August 2026 spans 6,213 procedures, 28,032 line items and 10,545 contract records worth an unadjusted total of €552.6 million; the largest category, medical goods and supplies, covers 973 procedures with 657 suppliers worth €238.9 million. The Health Ministry acknowledges its five-person central procurement team at the National Health Service could not take over purchasing for all 42 hospitals, so a broader but not full centralisation is planned.

The Public Utilities Commission (SPRK), after reviewing the gap between Tet's wholesale and retail prices, found that for the virtual unbundling (VULA) wholesale service outside Riga the price margin is too small for competitors to profitably offer comparable retail services. SPRK has therefore ordered Tet to lower the relevant tariffs, to ensure alternative operators can genuinely compete and ultimately give consumers a wider choice and more competitive prices.

On 16 September the Finance Ministry submitted to the Cabinet amendments to the public e-procurement rules that from 2027 will cap at €140,000 (excl. VAT) per year what a single contracting authority may spend on software-development services through the e-procurement system's e-catalogue. The aim is to stop significant IT development work being bought without proper competition, and purchasers will have to name the specific IT system the service is for, to improve traceability.

Amendments submitted to the Cabinet of Ministers on 16 September 2026 to the Public Electronic Procurement Regulations would, from 2027, set an annual limit of EUR 140,000 excluding VAT for purchasing software-development services via the e-Procurement system's e-catalogue.

The paywalled article explains whether a company, as a buyer, has the right to cancel the purchase of a defective computer and return it within two weeks, as is provided for consumers, and what rights are available in a B2B transaction.

The Procurement Monitoring Bureau (IUB) has added a new 'Procurement Guide for Suppliers' section to its website, covering eight practical topics — from procurement planning and market research to bid evaluation, exclusion grounds, challenging a procurement, contract performance and administrative offences. The guide also answers practical questions about common mistakes and how to act in various procurement situations.

On 15 September the Cabinet approved Finance Ministry amendments to the rules on publishing information online: from 1 January 2027, state and other public authorities must quarterly publish on their websites data on all procurement spending and contracts signed that quarter regardless of the amount, including the supplier's name, registration number and the procurement subject. Finance Minister M. Kučinskis says this reflects the public's right to know how taxpayer money is spent.

Amendments submitted to the Cabinet of Ministers on 14 September 2026 would, from 1 January 2027, require public authorities to quarterly publish on their websites information on all procurement-related spending and contracts concluded in that quarter.

A Finance Ministry audit checking over 1,600 people linked to procurements run by the State Digital Development Agency, among the winners of nine EU-fund-financed projects, found no signs of conflict of interest, though it rated the risk under the Public Procurement Law as medium. The audit found the classic "fraud triangle" elements present — opportunity, pressure, rationalisation — and recommended strengthening anti-corruption measures.

The paywalled article explains amendments now in force to the Public Procurement Law that widen the situations allowing a contracting supplier to be replaced, beyond company reorganisation alone.

LSM.lv reports that over the past two years, state and municipal bodies spent nearly half a billion euros on IT procurement, with only one bidder participating in roughly a fifth of these tenders. In early summer the prime minister suspended major IT procurements, noting that almost 40% of them were served by just three companies. Officials responsible for the sector are in no hurry to assign blame, acknowledging the situation is not much better elsewhere in the EU.

SPRK has set up a special regulatory environment (a "regulatory sandbox") allowing limited-term testing of innovative solutions with regulatory exemptions in a defined area. Here, Salaspils Siltums, together with grid operator Sadales tīkls and data-centre operator Tet, will test large-scale heat-pump technology to recover waste heat from a data centre for Salaspils district heating, including use of spare grid capacity without the usual additional-capacity tariff. The test period runs from January 1, 2027 to December 31, 2028, with a possible one-year extension, with SPRK retaining oversight.

LSM.lv reports that the European Commission has published draft legislation that would let public procurement favor the most environmentally friendly, highest-quality, or EU-made bid rather than automatically the cheapest. It plans a unified electronic procurement system meant to ease small and mid-sized firms' access to public contracts and broaden competition among suppliers.

Advocate General Andrea Biondi issued an opinion on September 8 in joined cases C-271/25 and C-334/25, concluding that member states may exclude economic operators from public procurement on national security grounds, provided EU-law principles are respected — proportionality, rights of defence and effective judicial protection. Case C-334/25 was referred by Lithuania's Supreme Court over the exclusion of "Skinest Baltija" from a railway procurement based on 2018 government decisions. The opinion is not binding on the Court but sets an important reference point for Baltic procurement practice, including Latvia's, in applying security-based exclusions.

The Procurement Monitoring Bureau has issued a standardized form for contracting authorities to submit data and assessments on the utility of planned or launched procurements and the proportionality of supplier requirements. The form implements a task set by the Cabinet of Ministers' August 25, 2026 meeting (Protocol No. 48, item 53) and has been available since September 8 in Excel format. The notice does not clearly state for which authorities use of the form is mandatory.

Since September 1, Latvia bans imports of several categories of Russian- and Belarusian-origin industrial goods — including books, newspapers, video games, sporting goods, toys, clothing and footwear — even via third countries. The Cabinet of Ministers issued the ban under regulations based on amendments to the Ukraine Civil Support Law fast-tracked by the Saeima on July 23. The restriction is planned to run through June 30, 2027.

Rus.lsm.lv reports that PM Andris Kulbergs said after a coalition meeting that the government plans a 300% tariff on cargo and grain handling from Russia and Belarus, and will develop mechanisms to identify and sanction transit of grain potentially stolen by Russia from Ukraine. The move follows Estonia's PM urging the Baltic states to take a unified stance so Russian grain does not exploit Latvia's infrastructure.

The State Revenue Service reports that from 1 October 2026 importers must submit a mill test certificate stating the country of "melting and casting" of the steel - the place where the steel or iron was first produced in liquid form.

From 1 September 2026, Latvia's ban on importing industrial goods of Russian and Belarusian origin took effect, under Cabinet of Ministers rules issued 25 August. The ban covers several product categories, including books, clothing, footwear and toys.

Also reported by: lvportals.lv

On 31 August the Official Gazette (Latvijas Vēstnesis, No. 166) published Cabinet of Ministers Regulation No. 509 of 25 August, which enters into force on 1 September and, on the basis of the Law on Support for Ukrainian Civilians, prohibits the import into Latvia of industrial goods of Russian and Belarusian origin – including when they are imported from other third countries. The ban covers seven groups of the Combined Nomenclature: printed matter (49), knitted and other clothing (61, 62), made-up textile articles (63), footwear (64), headgear (65) and toys and sports equipment (95).

The Public Utilities Commission approved new heat-energy supply tariffs for twelve regulated utilities, effective in September. The change affects residents and businesses in the relevant municipalities that hold heating-supply contracts with these utilities.

The Public Utilities Commission approved new water-service tariffs for five regulated companies, taking effect in September and October. The change affects billing for water supply and sewerage for residents and businesses in the relevant municipalities.

SIA "Alexela", a subsidiary of an Estonian energy company, has won the public procurement for the supply of electricity to the Saeima and the properties it manages for 24 months. According to the Electronic Procurement System, five bidders submitted offers; "Alexela" offered the lowest price – EUR 97.55 per megawatt-hour excluding VAT. The company was registered in Latvia in 2014 with share capital of EUR 562,800; last year its turnover was EUR 62.873 million and its profit EUR 180,197.

The Procurement Monitoring Bureau reminds contracting authorities about EU Regulation 2024/1735 (Net-Zero Industry Act) requirements, which have applied more broadly to public procurement since 1 July. The authority explains how to factor these requirements into procurement procedures.

From 1 September 2026, under Cabinet regulations adopted on 25 August, Latvia bans imports of several industrial goods – including printed matter, clothing and toys – from Russia and Belarus, including via third countries.

The Procurement Monitoring Bureau reminds buyers that under Section 8(7)(3) of the Public Procurement Law, a negotiated procedure without prior publication may be used only for unforeseeable emergencies such as accidents.

The Cabinet approved rules banning, from 1 September 2026, imports of printed materials, clothing, footwear and toys originating in Russia and Belarus, including goods routed through third countries. The rules supplement existing EU sanctions and will be reviewed annually. Imports from these countries have fallen 91% since 2022.

The Cabinet decided that line ministries must, by 30 September, review planned and ongoing public procurements valued at 140,000 euros or more for supplies/services, or 1 million euros for construction. They must assess whether the procurement is necessary, whether supplier requirements are proportionate, and the risk of cost overruns. State-owned enterprise supervisors must complete their reviews by 1 September.

The Construction State Control Bureau removed, from 28 August, the option to log into the BIS1 and BIS2 construction information systems with just an email and password. Users must now use secure electronic identification means, affecting everyone in the construction sector who uses the system.

The Procurement Monitoring Bureau reminds contracting authorities of the criteria for using a negotiated procedure based on the Public Procurement Law's emergency-circumstances provision. The clarification follows the recent storm damage in the country.

Riga municipality has announced a repeat auction for lease rights to a commercial property at Torņa iela 15, with a six-year lease term envisaged. Applications on the electronic auction platform are accepted until 10 September, with the auction closing on 21 September.

The article (paywalled, only the lead is visible) opens a series on accounting for construction contracts, noting that companies using the percentage-of-completion method must set up project accounting at signing, while micro-companies may use simplified rules.

Regulator SPRK approved new electricity distribution tariffs for AS Sadales tīkls, taking effect on 1 January 2027, introducing a simplified structure with two voltage levels instead of four. Three new tariff plans are offered - "Basic", "Powerful" and "Special" - and about 99% of users will see unchanged or lower distribution costs.

A survey of 125 construction company representatives, conducted by Citrus Solutions with the Latvian Builders' Association, found that a lack of funding, high costs of “green” building materials, and the absence of procurement advantages make it harder for the sector to implement sustainability principles.

Amendments to the Law on the Prohibition of Unfair Retail Trade Practices, in force since 19 August 2026, provide that a supplier must now be notified in writing at least 30 days before a product is delisted from the trading range, except when the goods fail to meet the contract's terms. The Competition Council announced the change.

A "Jurista Vards" conversation with sworn advocate Katrine Plavina-Mika and procurement specialist Arija Vecmane discusses the decade's biggest reform of Latvia's public procurement rules, aimed at making the process faster and cheaper.

Amendments to the Unfair Trading Practices Prohibition Law took effect on 19 August, requiring buyers to give suppliers at least 30 days' notice before delisting a product, introducing clearer rules for delivery forecasts, and limiting unilateral penalties where shortfalls stay within 10% of the forecast. Retailers must now pay for regular fresh vegetable and berry deliveries within 20 days. KP is urging market participants to review their cooperation agreements.

Njord Law outlines what foreign construction companies must arrange before starting works in Latvia, including mandatory registration in the Construction Merchant Register and recognition of foreign specialists' professional qualifications. The piece also covers classification requirements for public projects, worker-posting rules, and tax considerations relevant to cross-border contractors.

Monitoring the Riga Freeport Authority's 69.6-million-euro tender for wind-technology manufacturing infrastructure in Kundziņsala, Delna reports that seven bidders took part, including foreign companies from Poland, Estonia and Belgium. The organisation states it has observed no improper conduct during monitoring; results are expected in autumn 2026.

COBALT's procurement compass reviews five July 2026 decisions by the Procurement Monitoring Bureau (IUB) and court rulings, including whether a bidder may cure defects after a negative security assessment (only with a specific basis) and why identical product samples can be scored differently depending on manufacture date. It also covers SPSIL rules favouring EU-origin goods and a court's power to suspend performance of an already-concluded procurement contract where the lawfulness of the procurement itself is at stake.

A construction-company executive warns that abnormally low bids accepted in public tenders threaten viable competitors' survival, since commissions rarely check whether a price covers real costs. He calls for cost justifications and complexity-scaled evaluation criteria rather than lowest-price-only awards.