Ministry of Infrastructure: Eight changes to the law on public procurement

The Ministry of Infrastructure is amending critical provisions of Law 4412/16 with the aim of increasing transparency in the bidding of projects and reducing delays. As reported by the Ministry of Infrastructure, the competent Minister K. Karamanlis has clarified that this government does not no reduction in either transparency or efficiency. By streamlining public procurement legislation, both are ensured. The rationalization was necessary, as Law 4412 was drafted with great care in 2016 and then the SYRIZA government itself amended it 385 times. This fact proves the need for changes. Basic reforms introduced with the amendment of Law 4412/16: 1. Strengthening the design-construction system, so that the tender process of the projects can start more directly than it is valid today, in parallel with the environmental licensing of the project. The environmental permitting must be completed before the contractor is announced, provided that the approved environmental conditions do not substantially alter the object of the project. A basic principle of this assignment is the transfer of responsibility for the studies to the Contractor.2. The auction of projects of special importance for the country’s economy, ie projects that are included in article 7A of the Code of Compulsory Expropriation of Real Estate, will be able to start faster than it was valid until today. Large projects also provide for the implementation of the provisions concerning private investments, for their faster bidding.3. Dealing with the unusually low bids on the projects, which resulted in the difficulty of their completion. This fact was even pointed out by the European Commission. From now on, any bid that has a deviation greater than ten percent (10%) from the average of the discount of all bids submitted must be justified. The justification will be a binding agreement and part of the award contract, which cannot be changed throughout the performance of the contract. At the same time the performance guarantee is now calculated on the project auction budget and not on the final value of the contract.4. The possibility is established that the supervision can be exercised apart from the Managing Office and by a certified private body (natural or legal person or association of persons), which will have the necessary specialized knowledge.5. The system is transformed into a declarative one, from a control one as it is today. The purpose is to facilitate the measurements and accounts of the project. The Managing Authority is relieved of obligations, which it could not meet, resulting in adverse results for the State, due to automatic approvals. The submission of measurements by the contractor now becomes the rule and is accompanied by increased responsibility for their truth, in order to expedite the payment of bills.6. For projects with a budget of more than ten million euros (10,000,000 euros), the possibility of arbitral settlement of any dispute that arises regarding the implementation, interpretation or validity of the Convention is established. For lower budget projects, the consent of the competent technical council is required.7. Process modernization and digitization are promoted. In particular, the obligatory keeping by the contractor of the electronic diary of the project, in free software of general use, is introduced. The electronic diary is sent electronically to the Head of the Managing Service and to the project supervisor, with the aim of speeding up the information of all those involved in the project and resolving any disputes without time delays.8. In addition, the abolition of the draws for the promotion of the committees is progressing, which has caused excessive delays in the conduct of the competitions. At the same time, it becomes mandatory to post the study of the project before its announcement, so that participants in the competition can form a more complete picture of the project. At the same time, the complete reform of the provisions for the studies is promoted: New institutions are introduced, such as the conventional time of implementation of the study, the private supervision both at the stage of elaboration and mainly at the stage of receipt (checkers). These new institutions aim to enhance the quality of studies and consequently the quality of the works produced. Follow it on Google News and be the first to know all the news See all the latest News from Greece and the World, at

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