The project’s cost has been estimated at €9.5m, not including VAT. Credit: trabantos via Shutterstock.

Merko Ehitus Eesti, part of the Merko Ehitus group, has entered into a design-and-build construction contract with the Estonian Centre for Defence Investment for the construction of a National Defence House at the country’s Raadi campus in Tartu.

This project marks a significant development in the domestic construction sector, utilising an alliance procurement model that ensures all parties such as the architect, designer, and builder are jointly responsible for the outcome.

The estimated net area of the building is 5,200m², designed to accommodate the Ministry of Defence’s governance area divisions and institutions. The facility will include workplaces, meeting rooms, and dormitory-type accommodations, catering to the needs of the defence forces.

The tender for the project was awarded following a competitive procedure with negotiation, which evaluated various factors, including the proposed architectural solution, outdoor space designs, and the collaborative capabilities of the teams involved.

The total cost of the project has been estimated at €9.5m ($10.3m), excluding VAT.

Merko Ehitus is a prominent Estonian construction company, offering services in general construction, and civil engineering across Eastern Europe. As of the end of 2023, the group employed 635 individuals, with a revenue of €466m for the year.

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Prior to this project, the group’s Lithuanian arm, UAB Merko Statyba, secured a contract from Nato’s Support and Procurement Agency.

This contract involves providing design-and-build services for new infrastructures at Nato’s training complex in Pabradė, valued at more than €110m, with construction works expected to conclude by 2026.