The package of fiscal measures can lead to an increase in labor costs, financing and, in general, an increase in prices for various materials and products, affecting, among other things, the obligations that the state and private companies have undertaken. other in public procurement contracts. Therefore, private companies should analyze the available solutions to compensate some of the losses caused by these changes, sharing the burden with the state, which will practically be able to bear the consequences of its own measures.

Dan Daskalu, Radu NoshlakanPhoto: PwC Romania

To begin with, we would like to remind you that a public procurement contract is understood to mean those contracts concluded, on the one hand, between a business entity and a state authority (in the broadest sense), on the other, the subject of which is the performance of works, the supply of products or the provision of services . Contracts on public procurement are concluded, as a rule, based on the results of a competitive procedure (i.e. a public auction) conducted in accordance with Law No. 98/2016 on public procurement, in which various market operators can participate.

After the tender procedure is completed, the participant who submitted the best offer is recognized as the winner. It is clear that although in the sense of Law no. 98/2016 the best offer is not always the offer with the lowest price, the price element of the future public procurement contract is a central element of this type of contract, as in the case of contracts concluded between private companies.

Due to the importance attached to the price element of the future public procurement contract, the rule established by Law No. 98/2016, inspired by the European directive of the same name, is that this element should not change during the period of the public procurement contract.

Read the rest of the article on the PwC Romania blog

The article is signed by Dan Daskalou, Associate Associate at D&B David and Baias, and Radu Noshlakan, Senior Associate at D&B David and Baias

Article supported by PwC Romania