Construction project management in the hands of specialists brings benefits to foreign investors

November 29, 2019

According to the “Doing Business 2020” rating made by the World Bank and valuating the business environment in various countries, Lithuania rose three positions since last year and is now ranking 11th out of 190 countries. It is the highest place for Lithuania in the rating since its inception on 2002. Better yet, out of 28 EU States Lithuania is 4th, only following countries such as Denmark, the United Kingdom and Sweden.

Property registration is the scope Lithuania most favourably ranks at – 4th place, followed by contract execution – 7th overall, and for construction permits – 10th.

Based on the Lithuanian Bank and Lithuanian Department of Statistics, accumulated Foreign Direct Investment (FDI) in Lithuania reached EUR 15.5 billion at the end of 2018, and it is 4.6 proc. more than a year ago.17 proc. of all the attracted investments in 2018 covers investments in manufacturing – including construction.

Specialists of TEC group of companies has long-term experience in helping foreign investors manage their construction projects in Lithuania: the major renovation of a boiler plant of “Nordic Sugar Kėdainiai”, owned by the German concern “Nordzucker Group”, is successfully working here; construction of an aircraft painting hangar for the Irish company “Maas Aviation” at Kaunas International Airport begins; design works for the ASU technical gas plant “Kėdainiai LEZ” of German company “Linde AG” is ending.

We are talking with Mantas Biknius, Sales Director of TEC Consulting about how TEC group of companies can help foreign investors.

What advice and suggestions can you offer to foreign investors planning expansion in Lithuania?

First, we advise investors to get an in depth look in to the Lithuanian technical and civil construction legislative framework – it helps to correctly plan construction deadlines while also allowing better control of the planned investment. Another advice would be to analyse available project development scenarios and select the best working methodology early on – this avoids time losses in later stages of the project.

Although TEC Consulting specializes in construction project management, TEC, as a group, can help foreign investors from the very first steps: prepare feasibility and due-diligence studies, analyse market entry conditions and the applicable legislative frameworks, prepare initial project budgets and schedules – all in the aim of allowing the investor to feel that Lithuania offers a solid ground for their investment. The companies of our group design industrial, energy, infrastructure objects, meanwhile TEC Consulting provides more overall project management services such as design supervision, taking care of the building permit, tendering of local contractors, coordination and control of site activities, selection of necessary equipment and supervising the entire ongoing construction by providing technical supervision services.

In short, I could summarise that TEC help investors starting from first considerations of possible investment in Lithuania and it’s specific region, back to applying the already finished project to the competent authorities for final acceptance.

Can’t the investors do it themselves?

Well, usually there is more than one way to manage an investment. It depends on the client’s team he is willing to assign, his experience in our country and in civil construction works. Some clients delegate us for the entire project management process, for others, we provide only design, technical supervision, auditing and similar stand-alone services. We work in parallel with a general contractor (EPC), but we can also offer EPCM (Engineering, Procurement, Construction and Management) services as a compelling alternative.

Most importantly, TEC is proud of having a team of specialists with more than 17 years of experience in these types of works, and that is what allows us to fulfil results faster and with lower costs, all while leaving the client focused on his main business during the entire project process.

What’s the difference between a general contractor model and an EPCM?

Substantial differences are the level of involvement required from the client, the flexibility of the implementation process and the final cost of construction.

Working under general contractor service model, together with the client we prepare a concept of the future project, assemble the material and carry out selections of designer and general contractor, later we supervise the contractor’s work on the construction site by providing guidance and performing detailed mandatory technical supervisions. We also help the client in getting a building permit, completing construction procedures and arranging ownership and other documents.

Working under EPCM (Engineering, Procurement, Construction and Management) service model, the client is allowed to be directly involved into decision making, he undertakes contracts with designers and contractors of individual project parts – that is to say we work with the client as one team in the entire process. For every project stage we are looking for the most competent team to do the right task, we are looking for the most appropriate engineering solutions and equipment. Another advantage of EPCM is that all works are done in stages according to the needs and possibilities of the client. In this model the client can control the construction works by himself if he wishes so, is also able to nominate contractors and change the process at any time. Depending on the project, this model saves up to 20% of the estimated project value. TEC has good references in EPCM and our former clients are happy to have chosen this model.

About TEC Group

TEC Consulting is a member of the TEC Group and provides industry, energy and infrastructure projects with consultancy, project management and technical supervision services. Other member of the TEC Group – TEC Industry provides design and project implementation supervision services, TEC Infrastructure – design and technical supervision services in the field of transport infrastructure. TEC group has 94 employees in general, 70 of them are qualified engineers.

Since 2000, TEC Group companies have implemented more than 800 projects in Lithuania, Latvia, Estonia, Sweden, Denmark, Norway, Russia and Belarus.