Veidekke and Bjerkreim municipality have settled a legal dispute concerning a public procurement for the construction of a municipal care facility. Veidekke had filed a lawsuit seeking NOK 40 million in compensation for lost profit due to an alleged breach of procurement regulations (compensation for positive contractual interest). The case was scheduled for trial this week but has now been resolved through a settlement in which Veidekke will receive NOK 14 million.
Oslo Economics supported Bjerkreim municipality and the law firm Simonsen Vogt Wiig in evaluating the claim. Their analysis included an assessment of the profit Veidekke would have earned had the contract been awarded to them. The final settlement amount is close to Oslo Economics’ estimate, based on the specifics of the procurement and industry data. Read more about the settlement on the municipality’s website here (in Norwegian).
Oslo Economics regularly assists with damage calculations and economic assessments in compensation cases related to breaches of competition and procurement law, and breach of contracts. You can read more about our services here.
