The construction industry in the Baltic States is growing rapidly. Regulation of construction contracts is liberal, based on the principle of party autonomy. The main task for the Baltic States is to create conditions in the construction market (through mechanisms such as legal regulation, institutional management and supportive measures) which enable parties to resolve issues independently. This paper outlines the essential features of the regulation of construction contracts in Lithuania, Latvia and Estonia.

The main law regulating construction in Lithuania is the Law on Construction.1 The construction process is also regulated by technical construction Acts: technical construction regulations, construction rules, technical certificates and methodological recommendations. Under the laws, all Lithuanian and foreign subjects have the right to act as builders (also known as clients) in Lithuania provided that the following conditions are met: