Poland: the latest changes in Polish Public Procurement Law — the biggest amendment since 2004

On 25 July 2014, the Polish Parliament passed on an amendment of the Public Procurement Law. The changes introduced by this legislation reflect suggestions put forward by the country’s entrepreneurs and representatives of its public administration. The amendments are designed to tackle the most serious problems encountered in the public procurement process in Poland, such as competition among economic operators based solely on price, social dumping and the impossibility of valorising already concluded contracts. The amendment will soon go to the Senate (the second chamber of the Polish Parliament) and will most likely come into force in the final quarter of 2014.

Currently, the outcome of public procurement tenders in Poland is usually determined only by the price criteria. This situation is unfavourable both for economic operators and contracting entities. Often, members of the first group, in their efforts to submit the ‘best’ (i.e. lowest-priced) offers, agree to carry out the contract at underestimated costs, which often confronts these entities with bankruptcy. The latter group, the contracting entities, have taken into consideration only one economic factor (i.e. price) and are likely to have received services or goods of low quality — or none at all, if the economic operator was declared bankrupt in the course of fulfilling the contract…

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