Amendments to the Price Revision Scheme for Works Contracts and for the Acquisition of Goods and Services Contracts

Legal alert no. 163

Decree-Law no. 73/2021, of 18 August, amends the price revision scheme for public and private works contracts and for the acquisition of goods and services, approved by Decree-Law no. 6/2004, of 6 January, with the aim of adapting it to technological developments in the construction sector, as well as to the provisions of the Public Procurement Code in its current wording.

Among the amendments introduced by this diploma, the following stand out:

  • It is now expressly foreseen that the price after revisions, calculated at the end of the contractually established period of execution, plus legal extensions or extensions determined by court or arbitration awards, is not subject to the limits imposed by the base price or the ones that determined the choice of the pre-contractual procedure;
  • The introduction of the possibility of the interested parties, in case of omission in the specifications or if they consider the specifications to be inadequate to the specifics of the contract, to present the price revision formula within the first third of the deadline for the submission of tenders;
  • The awarding authority shall, within the second third of the deadline referred to in the previous subparagraph, inform the interested parties about the formula or formulas of the price revision regime to be included in the tenders to be submitted. Failure to comply with such formulas will lead to the exclusion of the bids;
  • A period of 60 days is set for the Owner to comment on the price revision calculations presented by the Contractor on its own initiative, after which, if the Owner does not make any communication to the Contractor, including the submission of a counterproposal, these calculations are considered to have been accepted;
  • Whenever the contract does not contain a payment date or deadline, the payment deadline shall be calculated based on article 299 of the Public Procurement Code (30 days);
  •  Without prejudice to the foreseen exceptions, the right to price revision will expire within 1 year after the provisional acceptance of the works (instead of expiring with the submission of the contract's account, as previously established);
  • The updating of the price revision indexes is no longer subject to approval by the member of the Government responsible for the area of infrastructures, but is now approved by the board of directors of the Institute of Public Markets for Real Estate and Construction (Instituto dos Mercados Públicos do Imobiliário e da Construção - IMPIC).

Decree-Law no. 73/2021 enters into force 30 days after its publication and applies to public and private works contracts (in the latter case, whenever the contract foresees the price revision) and for the acquisition of goods and services that result from procedures initiated after the respective entry into force date.

To access to the entire wording of Decree-Law n.º 73/2021:

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