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Estonian Builders Suffer Payment Deadlines, Aeripaeev Says

Estonian construction companies are suffering due to long payment deadlines in contracts with the public sector, Aeripaeev reported, citing the managers of Merko Ehitus AS and Nordecon AS.

Payment deadlines of more than 70 or 80 days in contracts with the central or local government institutions are usual, Nordecon’s Chief Executive Officer Jaano Vink was cited as saying by the Tallinn-based newspaper. The government has “crossed all limits” in tightening contract terms for the builders as it currently enjoys a one-contractor monopoly, according to Merko’s Chief Executive Officer Tiit Roben.

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