Works contracts

✔ ‘Work’ means the outcome of building that is sufficient to itself to fulfil an economic or technical function
✔ Works contracts cover the execution, or both the execution and design, of works
✔ Different procurement procedures apply, basing on the amount of the contract

WHAT ARE WORKS CONTRACTS?

Works contracts cover either the execution, or both the execution and design, of works or the realisation, by whatever means, of a work corresponding to the requirements specified by the Contracting Authority. A 'work' means the outcome of building or civil engineering works taken as a whole that is sufficient of itself to fulfil an economic or technical function.

WHICH ARE THE SPECIFIC RULES FOR WORKS CONTRACTS?

They are different basing on the contract amount:

Contracts from € 5,000,000 and above
Works contracts of € 5,000,000 or more must be awarded by means of an international open tender procedure following publication of a contract notice.
The contract notice is to be published in all appropriate media, in particular on the Beneficiary’s web site, in the international press and the national press of the country in which the Action is being carried out, or in other specialist periodicals.
Any contractor which fulfils the conditions referred to in section “Eligibility for contracts” (i.e. the general principles of procurement, the criteria for eligibility for contract - the rule of nationality and the rule of origin - and the common procurement rules) may submit a tender.
When the context requires, the Contracting Authority may require the application of an international restricted tender procedure.

Contracts of between € 300,000 and less than € 5,000,000
Such contracts are awarded by means of an open tender procedure published locally: the contract notice is published in all appropriate media at least in the country in which the Action is being carried out.
A local open tender procedure must provide other eligible contractors with the same opportunities as local firms.

Contracts under of less than € 300,000 but more than € 60,000
Works contracts worth less than € 300,000 but more than € 60,000 must be awarded by means of a competitive negotiated procedure without publication, in which the Beneficiary consults at least three contractors of its choice and negotiates the terms of the contract with one or more of them.

Contracts of € 60,000 or less For works of a value of €60,000 or less, the procedures established by the Beneficiary(ies) may be used, while respecting the general principles of procurement, the criteria for eligibility for contracts (i.e. the rule of nationality and the rule of origin) and the common procurement rules. Beneficiaries may place orders therefore on the basis of a single tender too.

Resources and useful links:
PRAG website
Contract-award procedures (Annex IV)


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