Modification of the public procurement contract before its conclusion

Experience / 31.08.2022

Lawyers of the Law Firm successfully represented the Client, i.e. a company operating in the construction and sanitation industry, in discussions with the ordering party regarding the amendment of the public procurement contract before it had even been concluded.

The Client submitted a bid for a public contract to build a geothermal heating plant and connect it to the existing district heating system, valuing the works in this regard at nearly 42 million zlotys net. The ordering party recognized this offer as the most favorable and selected the Client to carry out the contract. After the date of the offer, factual circumstances impossible to foresee arose, making it impossible to carry out the works for the offered price. The Client, even before concluding the contract with the ordering party, independently entered into talks aimed at increasing the contract fee. However, these talks did not produce the expected result. The ordering party indicated that it was not possible to change the contract for the execution of the public contract even before it was concluded. In view of this position of the ordering party, the Client was ready to resign from concluding an unfavorable contract, losing quite a large deposit. Before making a final decision on the subject, the Client turned to the Law Firm for help.

Lawyers of the Law Firm joined the talks with the ordering party, as well as supported the Client in the preparation of the relevant application. In the course of their discussions, they proved the possibility of amending the contract for the implementation of the public procurement in the scope relating to, among other things, the amount of remuneration, the deadline for the implementation of the investment and the terms of payment. The ordering party finally agreed to the position presented by the Law Firm and the legal arguments raised in this regard.

Thanks to the efforts of the Lawyers of the Law Firm, the Client also concluded an annex to the contract on the day it was concluded, increasing the amount of remuneration by more than 10%, extending the investment realization date and changing the terms of payment, which enabled him to execute the contract on market terms.