Vladimír Urbánek (Kurzy.cz)
Laws  |  February 19, 2013 12:00:10

The amendment to the Public Procurement Act brought a decrease in the number and value of contracts


The decline in the number of contracts and their values, it is the result of the current law on public procurement. On Monday, the participants agreed that in order for the second specialist conference "Forum procurement quality", which took place at the headquarters of the Ministry of Industry and Trade. Estimated value of contracts announced in 2012 registered a decrease of 9.2 percent when compared to the period from April to December 2012 and 2,011decreased the total value of orders announced by 47.4 percent. Comparing the number of announced orders from April to December period showed a decrease of 27.8 percent. It results from the study of the impact of the amendment on the economy of the Czech Republic 2013, presented today by representatives of the Forum platform Tenders well, headed by Minister of Industry and Trade and the First Vice-President Martin ODS Cuba.

When comparing the results for the period April to December 2012, after the amendment of the Public Procurement Act came into force with the same period last year, the total value of announced orders dropped by nearly half. "Value of new orders announced since the beginning of April 2012 until the end of the last year was significantly failed. Is this situation and problems with the procurement as soon as possible to correct and amend applicable regulations and to support growth. Not be allowed to further deepen the recession of the Czech economy, "commenting on the study Martin Kuba, Minister of Industry and Trade. Almost a third of which declined when compared to the period from April to December p vinegar announced orders. "The results for the first ten months of the amendment show that the system of public procurement is largely paralyzed. Confirmed both numbers and practical experience of contracting authorities and tenderers. Now you need to join forces so that the condition was corrected as soon as possible, "calls for early amendments and other measures Robert Pergl, chairman of the Chamber of administrators of public contracts.

After changing some passages of the Public Procurement Act also calls for long-term Czech Chamber of Commerce (CCC). "Generally, the law should adjust the bid evaluation focus more on quality performance. The Act should return to request the participant's tender information on whether a similar contract was ever made, and certificates of ISO, which Czech companies invest huge funds, "says Peter Cone, president of CCC, with his appreciation interest Czech Ministers on issues related to this Act and also hopes that the new form of the Public Procurement Act will see later in the year.

The construction sector

In all surveyed sectors - construction, design work and ICT - had the amendment of the Act on Public Procurement strongest influence on the construction contract.For the period April to December 2012, the number of announced construction orders fell by 41.2 per cent decrease in the volume of orders announced even reached 59.8 percent. Yearlong volume of contracts awarded fell by 18.1 percent, which represents a real decrease of 20 billion crowns in the short term as the economy lost 41 billion crowns and disappeared almost 20,000 jobs.

Sector design work

The value of contracts awarded in the sector of design work in the period April to December fell by 1.7 percent, year-round, however, rose by 59.9 percent. Influence on but had two large and exceptional contract, without whose realization would conversely sector declined.This sector is under the influence of the amendment suffers especially selecting processor engineering and design services only on the basis of lowest price. Design work predetermine the shape of the whole order, poor project so authorities can cause damage exceeding several times the price for design work. "If a very low price an investor receives inadequate project implementation threatens poor construction and logically becoming more expensive construction and subsequent operation," said President of the Czech Chamber of Architects (CCA) Josef Virgo. CCA will jointly with the Czech Chamber of Certified Engineers and Technicians (ČKAIT) promotes the term "secure price", ie the cost of the project to enable a high quality building.While pointing out the legal term "abnormally low tender price", the guideline definition can be used directly in the tender documentation. "In January I toured regional centers. At our general meetings were represented governors, deputies and other senior representatives of regional authorities or municipalities. Between my frequent topic belonged safe price. Everyone would suit, if the criterion of lowest price was rarely used, "adds Paul Hamster, Chairman ČKAIT.

The ICT sector procurement

Number renowned ICT orders from April to December 2012 decreased by 23.3 percent, the value of announced orders fell by a tenth. Yearlong number of contracts awarded in 2012 year on year in real terms fell by 5.1 percent in real financial value decrease of 6.8 percent. 'Visions of the Act is unfortunately not materialize. The amendment we asked simplified formalities. In many cases, define unreasonable, sometimes devastating terms and conditions. Retirement single successful competitor in the form of cancellation of the tender and the criterion of the lowest prices for the successful implementation of ICT work is very dangerous, "recounted shortcomings amendmentSvatoslav Novak, president of the Union of ICT.

The impact of the amendment to the Public Procurement Act in the Region

Also, the results of research on the impact the amendment to the Act on Public Procurement in regions confirm that the amendment brought yet more negative than positive impacts - increased by the governors of both administrative and time-consumingpreparation and conduct of procurement procedures, which of course means higher costs. According to most respondents governors as an amendment rather hinder economic development of the region. "Amendment to the Act on Public Procurement unfortunately County puts more administrative claims and the biggest problems involves stretching during the procurement process. This ultimately complicated by the use of European funds. Lengthy process and may lead to the fact that the appropriations for the subsidy must be returned, instead of helping the people of each region, "said Association for the regions of the Czech Republic's chairman Michal Hasek.The transparency of procurement procedures vital amendment but by representatives of the regions did not. On the contrary, had an impact on that region now mostly use the selection criterion of the lowest bid price.   In addition, two thirds of those surveyed counties afraid that unless you offer the lowest bid price will be accused of non-transparent negotiations. However, the majority of respondents already captains met with a case where too low price resulted in extra work or becoming more expensive contract.

Media Contact:                                                                             Media Contact:      

Jitka Němečková                                                                                 Mgr. Veronika Forejtová

+420 731 193 191                                                                                 spokesman for MIT

nemeckova@ceec.eu                                                                           +420 602 132 442

                                                                                                          forejtova@mpo.cz

The Procurement Forum beautifully

Forum Tenders quality is a joint project of the Chamber of administrators of public procurement and the Ministry of Industry and Trade, which seeks to increase the efficiency in the procurement process in the country, especially the consistent implementation of the principles 3E, ie economy, efficiency and effectiveness of public administration in the management of public funds. Professional partners conference is Economic Chamber of the Czech Republic, the Union of ICT and CEEC Research partners are Metrostav and Sweco Hydroprojekt. Provide professional patronage SPS, SIA CR - Council construction, CCA, ČKAIT, CSSI, CACE, ČKSE.

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