Community Law News
The European Parliament managed to discuss and pass to the Council many fairly substantial proposals across all industries, such as competition, trademarks, personal data protection, staff secondment, as well as stricter AML rules, and capital market regulations and policies.
New EU Rules for Public Contracts
The major goal of the new public contract directives was to update outdated rules. One of many important new features is the literally breakthrough rule for dividing contracts into parts. Not only is this now desirable, it will be mandatory in some cases. However, if a public contract awarding authority does not split the contract it will have to justify its decision in the contract documentation. This policy is aimed at increasing the involvement of small and medium sized business. Moreover, subcontractors should be able to request the contract awarding authority to pay for consummated subcontracts.
The Directive introduces major changes to how bids are evaluated: the current trend of looking at the overall economy takes into account not only the acquisition costs but the overall lifecycle costs, including energy efficiency, maintenance costs, pollutant disposal costs and environmental discarding costs. There is also a special emphasis on supporting innovations in a new type of proceedings: innovation partnerships, where a contract awarding procedure can be opened to resolve a particular problem.
The awarding procedure should be streamlined thanks to broader opportunities to discuss and negotiate the bids, primarily by means of negotiated procedures or competition dialogues. There are also endeavours to reduce the administrative burden. Moreover, proving one’s qualifications should also be easier, with the bidders’ affidavits playing a bigger role, and the public awarding procedure should gradually be made fully electronic. The opportunity to modify concluded agreements or assign additional work is to be substantially extended, as well.
What is important for Czech contract awarding authorities and bidders alike is how the EU legislation is to be transposed into Czech law. The Ministry for Regional Development has already commenced working on the new Public Contracts Act, which should take force on 1 January 2016.
Other articles
KŠB "Scores" Major Infrastructure Win: The New Ball Sports Centre in České Budějovice
KŠB has advised on the execution of a construction contract for the Ball Sports Centre in České Budějovice, a major public infrastructure project set to become a new landmark for sport and community life in the region.
Suburbanization Trends and Sustainable Commuting: Will the Construction Act Amendment Change the Landscape?
The discussion surrounding the current proposal to amend the Construction Act (Parliamentary Print 67) has moved to the committee stage in the Chamber of Deputies following its first reading. The primary declared objective is the acceleration of construction, particularly regarding residential buildings. The shortage of affordable housing remains a pressing issue in major cities, both in the Czech Republic and abroad, giving rise to the pervasive trend of suburbanization. This raises the question: does the proposed amendment truly have the ambition to reverse this trend, and will an increase in housing construction alone suffice?
Success for KŠB’s Litigation Team
KŠB’s litigation team, led by Pavel Dejl and Hana Dejlová, has achieved a significant victory for a long-standing client in a dispute with the Czech Ministry of Justice concerning excessively lengthy court proceedings.
