Greater protection for subcontractors in public procurement contracts is to be introduced, under new legislation which comes into force on 24 December 2013.
The change gives contracting authorities greater powers of supervision over the performance of public procurement contracts and provides more protection to subcontractors, especially in the construction sector.
Contracting authorities will be able to require companies participating in tender procedures to specify the names of companies proposed as subcontractors, on whose capabilities the tender participant relies for the purpose of the tender.
In construction works tenders, contracting authorities will be given greater scope of influence over the content of agreements with subcontractors. Contracting authorities will also be able to control payments which should be made by the general contractor to subcontractors. In specific situations, they will be entitled to pay remuneration directly to subcontractors.
Procurement proceedings initiated before the new provisions come into force and public contracts executed before this date will be governed by the previous rules.