public works contracts

8/14/2019 Public Works Contracts

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PUBLIC WORKS CONTRACTS

CARLOS FERRAZ


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EUROPEAN REGULATIONS

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

DIRECTIVE 2004/18/EC: public workscontracts, public supply contracts andpublic service contracts


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EUROPEAN UNION

27 countries

Adaptation to national law

Similar principles
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NATIONAL LAW

Portugal: Decree law 18/2008, dated 29 January

Definitions and general principles of thePortuguese procurement and the rules for thetenders


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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


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NATIONAL LAW

Join venture / Consortium: each person isjointly and severally liable to the Employer for

the performance of the contract

Bonds and guarantees: decisions made inrelation to bonds and guarantees affect theway the tenders are invited and also the waythe contract is formed


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NATIONAL LAW

Bid Bond:

contract of guarantee whereby theguarantor or surety (authorised to doguarantee business) undertakes to paydamages to the Employer when the

Contractor does not honour his tender


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NATIONAL LAW

Performance Bond:

contract of guarantee whereby theguarantor or surety (authorised to doguarantee business) undertakes to paydamages to the Employer when the

Contractor does not honour theContract.


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NATIONAL LAW

Retention:

the Employer keeps part of the contractsum, a part of the value of the workdone, as security for the costs of

repairs to defects (defects period)


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NATIONAL LAW

Contractors responsibilities:

Execute the works as described in thecontract;

Must comply with all legal requirements;

Delays;


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NATIONAL LAW

Contractors responsibilities:

Contract sum should cover the costs of performing thecontractor obligations under the contract (Pricevariations);

Insurance (all risks, customs etc.);

Conditions of employment.


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NATIONAL LAW

Managing the works in progress:

Resolving DisputesResolving 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


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NATIONAL LAW

Suspension of Works: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 theworks


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NATIONAL LAW

Termination of the ContractTermination of the Contract

by the Contractor (physically impossible to fulfil theobligations / the Employer dose not pay the contractsum)

by the Employer (Contractor fails to comply hisobligations / abandons the works / does not haveadequate insurance cover / becomes insolvent)


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PUBLIC WORKS CONTRACTS

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public works contracts

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