The Ministry of Development and Technology is preparing a draft amendment to the public procurement law, which is to make it possible to increase the valorization limits in already concluded contracts and to introduce indexation clauses to contracts not previously subject to the obligation to introduce them – said the head of the ministry, Waldemar Buda.
Notice that he changes are to apply to all types of contracts. – The changes we will introduce will apply to all categories of contracts, i.e. services, supplies and works. In order to be able to expand the catalogue of contracts, we will amend the Public Procurement Law , he added.
What exactly will the amendment be about?
The planned regulations are to introduce different regulations for the period before January 1, 2021, when the law did not provide for an obligation to include an indexation clause in the contract and after that date when such an obligation exists for certain categories of contracts.
The draft is in the form of a special act, supplementing the existing regulations with provisions which additionally guarantee the possibility of changing the contract in the current market situation.
The proposed solutions assume that in contracts concluded before January 1, 2021, if the contractor demonstrates to the contracting authority the real impact of changes in the prices of materials or costs on the cost of the contract, the contracting authority, in agreement with the contractor, will be able to amend the contract.
Changes in two ways
These changes can be made in two ways: either by valorizing the contractor’s remuneration while maintaining the distribution of risks between the parties – 50%. at 50 percent or by changing the scope of the service or the date of performance of the contract or its part, or temporarily suspending the performance of the contract or its part.
The announcement shows that the project does not provide for “automatic” or obligatory indexation. In each case, the impact of the current market conditions on the cost of the contract will be examined. In the event of an impact, one of the permissible options for amending the contract would be an indexation of the remuneration.
The change is also to extend the catalogue of contracts subject to the obligation to introduce an indexation clause to include supply contracts and contracts for construction works and services concluded for a period longer than 6 months (currently over 12 months).
Six changes are planned with the amendment:
- the possibility of increasing the remuneration above the index and contract rate
- extending the obligation to conclude indexation clauses over 6 months (so far 12 months) and extending the obligation to index also supplies (currently works and services),
- the possibility of introducing clauses to already concluded contracts
- indication of the basis for indexation in the absence of a clause in the contract,
- introducing various methods of changing contracts by e.g. limiting the scope of contracts, changing the date of completion, temporary suspension of the contract,
- 50/50 risk sharing