AmCham Position on the Proposed Changes of the Public Procurement Methodology Due to Inflation

AmCham Bulgaria via its Public Procurement Working Group issued a position on the proposed changes of the Methodology of Indexation of a Contract signed after Public Procurement Procedure.

The position gives the following arguments:

  • Inflation calculation moment – Art. 1, para. 2 of the Draft – the proposed Draft does not create a mechanism for defining and ascertainment of the specific values of the cost done for goods and materials.
  • Consecutive sanctions according to Art. 1, para. 3 of the Draft – the statement suggests that Art. 1 Para. 3 to be cancelled, because the proposed text would create conditions in which the contractor would misuse non-sufficient occasions and reasons which can put the contracted organization in delay, thus they can refuse to implement the Methodology. This text goes against the law in the sense that it brings limitation that are not part in the Public Procurement Act.
  • Regulating the refusal of indexations from the contractor – in that case if there is a reason because of which the contractors can not implement the Methodology, we suggest to include a text that stipulates the creation of opportunities for the contracted in such a изпълнителите, при такъв unscrupulous and lack of motives decline, to have the right to cancel the contract or the frame agreement. The AmCham position suggest that there should be a new paragraph with new content, quote: “The refusal of indexation on behalf of the contractor can serve as a reason to cancellation of the public procurement contract on behalf of the contracted party, without this to be considered as default of their behalf.”.
  • Regulation of the indexation refusal on behalf of the contractor – the position suggests in such cases to be provided an opportunity the contractors to chose either of these options: monthly or three-monthly reports while the contracts should follow the essence of the construction works and this decision should be embedded in the documentation of the specific public procurement, incl. the contract.
Download the position in Bulgarian.