Public contracts to be adjusted to inflation

The Government has decided that the value of the public contracts concluded for a period longer than one year will be adjusted to annual inflation, except for the first year of the contracts’ execution, Info-Prim Neo reports. According to Finance Minister Veaceslav Negruta, the application of this mechanism will exclude situations where the contractors are unable to obtain the sought profit due to rises in the prices of the respective goods or services. The lack of a mechanism for adjusting the value of longer-term contracts has been the cause of contractors failing to meet their obligations under the contract, which would lead to the cancellation of the contract and the re-initiation of costly and time-consuming public procurement procedures. The adjustment can be requested both by the contractors and the contracting authorities, either on their own initiative or on the recommendation of the relevant inspection bodies. The request shall be submitted no later than 60 days from the publication of the latest inflation data.

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