Committee holds Landsvirkjun liable over rejected contractor bid

A public procurement complaints committee has ruled Landsvirkjun liable for damages to contractor Þjótandi ehf. after the company’s bid for road and area maintenance was rejected in favour of a rival that failed to meet equipment requirements, mbl.is reported.

The contract covered snow clearing and upkeep of roads and areas in the Þjórsá region, as well as other specified work. Landsvirkjun must also pay Þjótandi 1.75 million krónur in legal costs.

The work was put out to tender in spring 2025, with two bids opened on June 6. Þjótandi bid just over 213 million krónur, while Stórverk ehf. bid slightly more than 204 million. The tender documents said bids that failed to meet the minimum requirements would be rejected.

Among the requirements, bidders had to demonstrate experience with comparable road, snow-clearing and earthworks projects, and own or have access to the necessary equipment. The committee found that documents submitted by Stórverk showed it had one crane-equipped truck, rather than the two required. There was no evidence that it had arranged to buy, rent or otherwise access a second truck.

The committee said Stórverk had not shown that it met the minimum equipment requirements, so Landsvirkjun was not permitted to accept its bid.