Public Works Contracts

PUBLIC WORKS CONTRACTS

CARLOS FERRAZ

EUROPEAN REGULATIONS

 DIRECTIVE

2004/17/EC: water, energy, transports and postal services sectors

 DIRECTIVE

2004/18/EC: public works contracts, public supply contracts and public service contracts

EUROPEAN UNION  27

countries

 Adaptation  Similar

to national law

principles

NATIONAL LAW  Portugal:

Decree law 18/2008, dated 29 January

 Definitions

and general principles of the Portuguese procurement and the rules for the tenders

NATIONAL LAW 

CONTRACT: - Employer - Contractor



Agreement - Signed between the employer and the contractor - Contractor: agrees to execute the works in accordance whit the contract - Employer: agrees to pay the contract sum

NATIONAL LAW 

Join venture / Consortium: each person is jointly and severally liable to the Employer for the performance of the contract



Bonds and guarantees: decisions made in relation to bonds and guarantees affect the way the tenders are invited and also the way the contract is formed

NATIONAL LAW  Bid

Bond: contract of guarantee whereby the guarantor or surety (authorised to do guarantee business) undertakes to pay damages to the Employer when the Contractor does not honour his tender

NATIONAL LAW  Performance

Bond: contract of guarantee whereby the guarantor or surety (authorised to do guarantee business) undertakes to pay damages to the Employer when the Contractor does not honour the Contract.

NATIONAL LAW  Retention:

the Employer keeps part of the contract sum, a part of the value of the work done, as security for the costs of repairs to defects (defects period)

NATIONAL LAW  Contractor’s

responsibilities:

–

Execute the works as described in the contract;

–

Must comply with all legal requirements;

–

Delays;

NATIONAL LAW  Contractor’s

responsibilities:

–

Contract sum should cover the costs of performing the contractor obligations under the contract (Price variations);

–

Insurance (all risks, customs etc.);

–

Conditions of employment.

NATIONAL LAW 

Managing the works in progress: –

Resolving Disputes: Disputes Disputes can cause delays and costs. The best way of dealing with disputes is to avoid them. There are two levels of intervention to aid resolution disputes: (1) Conciliation (2) Arbitration

NATIONAL LAW –

Suspension of Works: There are circumstances where the works may be temporally suspended (1) Employer fails to pay the amounts of the Contract Sum (2)Employer may instruct the Contractor to suspend the works

NATIONAL LAW –

Termination of the Contract

by the Contractor (physically impossible to fulfil the obligations / the Employer dose not pay the contract sum) by the Employer (Contractor fails to comply his obligations / abandons the works / does not have adequate insurance cover / becomes insolvent)

PUBLIC WORKS CONTRACTS

THE END