Contract signed for construction of residential complex in Podgorica – First phase of Velje Brdo costs EUR 40 million excluding VAT

The Ministry of Public Works has signed a contract with the consortium IGP Fidija from Podgorica and Ing Invest from Danilovgrad for the development of the Main Design of the Block A1 residential complex and the execution of construction works on the first phase of part of the residential complex with supporting infrastructure in the Velje Brdo settlement in Podgorica.

The contracted value is EUR 40,049,774 excluding VAT, while VAT amounts to EUR 8,410,452.54. The total value of the contract with VAT is EUR 48,460,226.54.

The contract was signed by the Ministry of Public Works, represented by Minister Majda Adzovic, and the consortium led by IGP Fidija, which also includes Ing Invest.

The subject of the contract is the development of technical documentation at the level of the Main Project for Block A1, as well as the execution of works on the first phase of the residential complex with accompanying infrastructure.

The development of the project and the works will be carried out in accordance with the Law on Construction of Facilities, the program task, urban-technical conditions and urban-architectural conceptual design, i.e. according to the revised Main Project.

Deadline 36 months

The deadline for the implementation of the contract is 36 months from its signing.

A period of 3.5 months is envisaged for the development of the Main Project of the first phase, with an additional 15 days for the submission of supplemented and finalized documentation based on the auditor’s comments.

The same deadline is envisaged for the development of the Main Project of the second and third phases, with the start of their development being linked to a positive revision of the previous phase.

A period of 32 months is envisaged for the execution of the works of the first phase from the date of the contractor’s introduction into the job.

The contract specifies that 6.5% of the total contracted value relates to the development of the Main Project, while 93.5% belongs to the execution of the works.

This, calculated on the value of the contract excluding VAT, amounts to approximately EUR 2.60 million for design and approximately EUR 37.45 million for construction.

Advance and other payments

A first advance payment of 2 percent of the contract, or approximately EUR 800,995 excluding VAT, is envisaged after the contract is signed and the advance payment guarantee is submitted.

After obtaining the construction permit for the first phase, a second advance payment of 10 percent of the contract is envisaged, which amounts to approximately EUR 4.00 million excluding VAT, also with an appropriate advance payment guarantee.

The remaining funds for the construction will be paid based on temporary situations, certified by expert supervision.

Three phases are envisaged for the remaining payment - 32%, 33% and 35% of the project value, with a deduction for previously paid advances.

The contract also defines that upon completion of the project, the first advance payment will be fully refunded.

Multiple subcontractors

Multiple subcontractors will be involved in the implementation of the work.

VING is engaged for architectural works, Geo Max Group for geodetic works, MK Green Factory for landscape architecture works, while Lars Fire is in charge of occupational safety.

Geoengineering will perform part of the work in the field of geodesy, Geoprojekt will perform geomechanical studies, and Paming will perform fire protection studies, environmental impact assessments, and occupational safety.

Alt Scape is engaged for the development of the Main Landscape Architecture Project, while ITS Engineering will work on the traffic signalization and road equipment project.

Penalties for delays

If the contractor fails to complete the work within the agreed deadline through its own fault, it is obliged to pay penalties of one per thousand of the agreed price of all works for each day the deadline is exceeded.

The total amount of the agreed penalty cannot exceed 5% of the agreed price of the works.

However, even after paying the penalty, the contractor is obliged to complete and deliver the contracted works, while the Ministry has the right to demand compensation for damages exceeding the amount of the calculated contractual penalty.

Guarantees and insurance

The contractor is obliged to submit a guarantee for the proper execution of the contract in the amount of 10% of the contract value with VAT, or approximately EUR 4.85 million.

In addition, it is obliged to provide a guarantee for the removal of defects within the warranty period in the amount of 10% of the contracted value, as well as a professional liability insurance policy in the amount of EUR 100,000.

The warranty period for the performed works is 24 months from the date of receipt of the final report of the expert supervision and handover of the facility.

The contract also stipulates that the contractor shall provide, at its own expense, the organization and connection of the construction site to the electrical, water supply and sewage networks, road and telecommunications infrastructure, along with the necessary works, materials and approvals from the competent institutions.

The contract was concluded based on an open public procurement procedure, the tender documentation of which was published on June 22, 2026. The decision on the selection of the most favorable bid was made on August 3, while the consortium’s bid was submitted via the Electronic Public Procurement System on July 24, 2026.

According to previously published data, this is the first phase, which includes 185 apartments - 79 apartments of 100 square meters and 106 apartments of 60 square meters each, or a total of 14,260 square meters of net living space.

We remind that, as eKapija has already written, the Ministry of Public Works, after conducting a bid evaluation procedure, selected the most favorable bids in early August for the construction of Velje Brdo Boulevard, as well as for the development of the Main Design of Block A1 and the execution of the first phase of works on the residential complex with accompanying infrastructure.

– More than 30 business entities were involved in two separate procedures, through joint bids, consortia and the engagement of subcontractors, which confirms the significant interest of the economy in participating in the implementation of the Velje Brdo project – the competent government department stated.

Ministry of Public Works

IGP Fidija

Ing Invest

VING

Geo Max Group

MK Green Factory

Lars Fire

Geoengineering

Geoprojekt

Paming

Alt Scape

ITS Engineering

Majda Adžović

construction of first phase of block A1 Velje brdo

block A 1 Velje brdo