Public procurement disputes

• Contractual penalties. Because of the nature of the public procurement procedure (e.g. when contractors are not permitted to negotiate the terms of the contract but may only submit inquiries), contractual penalties in public contracts are often more favourable to the contracting authority than to the contractor, which may lead to disputes over both the grounds for penalties and the amounts.
• Security for contract performance. In public contracts, the contractor is often required to provide security for performance of the contract (in various forms, such as a cash deposit or a guarantee from a bank or insurance company). The security may then be drawn on if the contract is not performed properly. But the conditions for drawing on the security may be interpreted differently by the parties, which may require a judicial resolution.
• Declaratory relief with respect to the existence of a legal relationship. Many disputes in the area of public procurement surround the issue of the existence and terms of the contract in force between the contractor and the contracting authority. This applies particularly to long-term contracts, involving complex projects, or where the terms are modified during the course of performance (particularly given that the possibility of amending public contracts may be seriously limited). Thus in the case of a dispute between the parties, the validity or terms of the contract may have to be examined by the court.
• Public oversight of procurement, concerning performance by the contracting authority of obligations under contracts reviewed by the Supreme Audit Office.

We represent both contracting authorities and contractors. The most frequent cases we handle include disputes over the effectiveness of renunciation or termination of contracts, assessment of contractual penalties, damages for improper performance, and substitute performance.

Contact:

Mirella Lechna-Marchewka, mirella.lechna@wardynski.com.pl

Tel.: +48 71 348 86 00