Public procurement (Czech Republic)

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Public procurement is one of the cornerstones of the single European market. This paper in SSD’s EU Accession Series focusses on the key aspects of public procurement in the Czech Republic.

Public Procurement Law is one of the cornerstones of the single European market. It aims to provide for a level playing field for all operators based in the EU in the area of public contracts where, traditionally, national preferences played (and indirectly still play) a major role.

Public procurement is an important sector of the economy. According to the European Commission’s estimates, it represents 16% of EU GDP, i.e. approx. 1400 billion. The EU rules will be in effect in the Czech Republic on 1 May 2004 following the adoption of the new act no. 40/2004 (the “Procurement Act”).1 New EU legislation, which has to be transposed into national law by 2006, seeks to further facilitate international procurement.

Accordingly, as of accession, through the application of transparent tender procedures, Czech companies will have the opportunity to compete on an equal footing for a share of this market. Companies that do business with public authorities are well advised to have a general understanding of public procurement rules in order to first identify the full range of business opportunities open to them and then to comply with the rules necessary to ensure smooth contractual procedures.

To read the full paper, visit theSquire, Sanders and Dempsey website.  

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