Simplification of procurement in construction

Belarus: From 1 January 2017 to 1 January 2019 new rules will be in effect on selecting the procurement procedure in construction.

Conditions for procurement of goods, services and work for construction financed by the private sector have been significant simplified by Decree no 380 of 20 October 2016. In this case it will be enough to carry out the negotiation procedure by selecting a contractor (supplier), which is easier and simpler than tendering. The exception is construction of residential houses: if the construction cost is 6000 basic units (EUR 62 600) and more, where tendering is required regardless of the sources of finance.

For procurement financed from state funds, the construction costs from which it is necessary to carry out the tendering are the same: 6000 basic units (EUR 62 600) and more by financing from budget funds; 100 000 basic units (EUR 1.044 million) and more by financing from public organizations. If construction costs are lower than this amount the negotiation procedure can be carried out.

In particular cases the negotiation procedure is possible even if the construction cost is equal to or more than the amount specified above. The list of such cases is extended in the new Decree:
(i) performing current repair works on the basis of project documentation or defective act,
(ii) construction supervision if the developer of project documentation cannot perform such supervision,
(iii) elimination of accidents or emergencies, etc.

Another important change is that from 2017 daughter unitary companies, daughter or related companies and branches of the organizer of the procurement procedure will be able to participate in procurement procedures as potential candidates for performing work or services or delivering goods.

As before, the investor can select contractors and project documentation development contractors, suppliers of goods and service providers in investment projects without a negotiation or tendering procedure.

The new rules do not apply to procurement procedures started before 1 January 2017 or contracts concluded before 1 January 2017.

Source: National legal Internet portal of the Republic of Belarus (NLIP) 25.10.2016, 1/16695

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