public works contracts
TRANSCRIPT
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PUBLIC WORKS CONTRACTS
CARLOS FERRAZ
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EUROPEAN REGULATIONS
DIRECTIVE 2004/17/EC: water, energy,transports and postal services sectors
DIRECTIVE 2004/18/EC: public workscontracts, public supply contracts andpublic service contracts
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EUROPEAN UNION
27 countries
Adaptation to national law
Similar principles
http://images.google.pt/imgres?imgurl=http://kejda.net/wp-content/uploads/2007/11/european_union.jpg&imgrefurl=http://kejda.net/category/free-enterprise/&h=567&w=880&sz=213&tbnid=uSdaHl7VniwiwM:&tbnh=94&tbnw=146&prev=/images%3Fq%3Dpicture%2Bof%2Bthe%2Beuropean%2Bunion%26um%3D1&start=3&sa=X&oi=images&ct=image&cd=3 -
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NATIONAL LAW
Portugal: Decree law 18/2008, dated 29 January
Definitions and general principles of thePortuguese procurement and the rules for thetenders
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NATIONAL LAW
CONTRACT:
- Employer
- Contractor
Agreement
- Signed between the employer and the contractor
- Contractor: agrees to execute the works in
accordance whit the contract- Employer: agrees to pay the contract sum
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NATIONAL LAW
Join venture / Consortium: each person isjointly and severally liable to the Employer for
the performance of the contract
Bonds and guarantees: decisions made inrelation to bonds and guarantees affect theway the tenders are invited and also the waythe contract is formed
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NATIONAL LAW
Bid Bond:
contract of guarantee whereby theguarantor or surety (authorised to doguarantee business) undertakes to paydamages to the Employer when the
Contractor does not honour his tender
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NATIONAL LAW
Performance Bond:
contract of guarantee whereby theguarantor or surety (authorised to doguarantee business) undertakes to paydamages to the Employer when the
Contractor does not honour theContract.
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NATIONAL LAW
Retention:
the Employer keeps part of the contractsum, a part of the value of the workdone, as security for the costs of
repairs to defects (defects period)
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NATIONAL LAW
Contractors responsibilities:
Execute the works as described in thecontract;
Must comply with all legal requirements;
Delays;
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NATIONAL LAW
Contractors responsibilities:
Contract sum should cover the costs of performing thecontractor obligations under the contract (Pricevariations);
Insurance (all risks, customs etc.);
Conditions of employment.
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NATIONAL LAW
Managing the works in progress:
Resolving DisputesResolving Disputes:
Disputes can cause delays and costs.
The best way of dealing with disputes is to avoid them.
There are two levels of intervention to aid resolution disputes:(1) Conciliation
(2) Arbitration
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NATIONAL LAW
Suspension of Works:Suspension of Works:
There are circumstances where the works may be
temporally suspended
(1) Employer fails to pay the amounts of the Contract Sum
(2)Employer may instruct the Contractor to suspend theworks
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NATIONAL LAW
Termination of the ContractTermination of the Contract
by the Contractor (physically impossible to fulfil theobligations / the Employer dose not pay the contractsum)
by the Employer (Contractor fails to comply hisobligations / abandons the works / does not haveadequate insurance cover / becomes insolvent)
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PUBLIC WORKS CONTRACTS
THE END