Agenda

THE PROCEDURE FOR CONDUCTING BILLION-DOLLAR TENDERS FOR ROAD WORKS

01/06/2020

 

As reported by Senior Expert of the Office of Effective Regulation (BRDO) - "There have been real battles over road procurement recently. Supporters of market demonopolization and a support group for the biggest companies that don't want competition have come together on the battlefield called 'Big Construction. During the "battle", the storm of ordered publications in the media and the accusations of the parties on social networks have already been used.
All this is due to billion dollar tenders for road works, which will be paid from the state budget".

On April 19, 2020, amendments to the Law on Public Procurement and a number of other laws came into force, introducing, in particular, new rules of the game for procurement in the road industry. From now on, a regular person, an individual entrepreneur, a legal entity, as well as an association of bidders who have submitted a single tender offer may take part in the tender. In turn, the law provides for the following forms of associations:

- a separate legal entity created by merging resident legal entities;
- a separate legal entity created by merging legal entities (residents and non-residents);
- association of non-resident legal entities with or without the creation of a separate legal entity.

Thus, only non-resident companies can participate on the basis of an agreement on joint activities without the creation of a legal entity.

In order to participate in a road tender, an association of enterprises (for example, a consortium) must confirm its compliance with the qualification criteria of the tender. To do this, the consortium "combines" the capacities of its member companies as subcontractors / co-contractors, providing aggregate information about their equipment, technology and employees with the necessary knowledge and experience. If a license or permit is required to perform a particular type of work, it must be submitted to the consortium by one of the members of the association.

In early March, Ukravtodor presented draft guidelines for the preparation of standard tender documents by bidders, which set clear requirements for ways to confirm the bidder's compliance with the qualification criteria for equipment, employees, work experience and financial statements.

The new version of the guidelines should fix the right to participate in tender procedures of all willing road market participants who meet clear criteria:

- have the necessary material and technical base;
- have experience of work on public roads of national importance (international, national or regional) of any category;
- have experience of work on public roads of local significance of any category.
 

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