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Changes in Public Procurement Act: small subcontractors to be paid directly by the state

Date: Oct 01, 2013

EU

 

29.08.2013.

Source : http://www.standartnews.com

 

Sofia, Bulgaria.

Small companies that are subcontractors of state procurement contracts will be able to receive their money directly from the state. This is one of the amendments to the Public Procurement Act (PPA), which was adopted recently by the Council of Ministers.

Furthermore, by the construction contracts worth over the EU thresholds, the tender-winners will be obligated to use subcontractors for not less than 30% and not more than 70% of the order.

If the prime contractor does not settle its debts to the subcontractors, it shall not be entitled to participate in the next similar tender, the draft changes to the Law on Public Procurement provide.

Changes in the LPA also provide for measures to cut red tape. Tender documentation will be free of charge. The right of the clients to ask for a proof of the financial and economic situation of the candidates with their turnover for the last 3-5 years will be also withdrawn.

According to the government, these are anti-crisis measures and will return to the market companies, which up to now were excluded for subjective reasons. The changes in the Public Procurement Act will also prohibit a close relationship between the contractors and the subcontractors.