Applying for granting a public procurement as part of a consortium

Publication / 08.02.2021

According to the wording of the Public Procurement Law, contractors may jointly compete for the award of a contract by forming a so-called consortium.

Accordingly, the contracting authority has the power to reserve the obligation of individual contractors, who are members of a consortium, to personally perform key tasks for contracts having works or services as their subject matter, and in the framework of a supply contract to perform key work related to deployment and installation of the subject matter of the contract.

Importantly, under the provisions of the new law, the contracting authority may specify a different way for a single contractor (acting as part of a consortium) and a different way for a consortium (all contractors acting jointly) to meet the conditions.

The new regulations give the ordering party the authority to determine the (objectively reasonable) method by which the consortium meets the conditions for participation in the proceeding, as long as this is justified by the nature of the contract and is proportionate.

In light of the new regulations, contractors jointly bidding for the contract (as part of a consortium) are, as a rule, jointly and severally liable for performance of the contract and lodging a performance bond.